Skip to main content

Full text of "Financial Times , 1982, UK, English"

See other formats 


I 


:3 


s 


* 


hr 


U 


ei 


y 


f o L G ™ o R , ACH 1 N 1 NG steel 

FOR FORGING, UPSETTING 
& EXTRUSIO N FROM K1VET0N PARK 

alloy 

steeiSi Coated coils for cold forging and 

extrusion, sections aapocialityf 
• ^^.^sranSQOf finish as. Sizes 



LONGINES 





No. 28 


COWTIWEOTAL SELLING PRICES, AUSTRIA' Sdi. 15; BELGIUM 


NEWS SUMMARY 



BUSHED IN LONDON AND FRANKFURT 


Friday July 9 1982 


***30p 


World’s 
Most 
Honoured 
Watch 


FT 5.00: GERMAN? DMZO: ITALY; L1.00Q; NETHERLANDS FI £25 : NORWAY? KrS.OO: PORTUGAL Esc 50; SPAIN Pta8S; SWEDEN Krfi.00: SWITZERLAND FrZ.0; EIRE 50 p; MALTA 30c 


GENERAL 


BUSINESS 


Hopes 
rise for 
peace 
in Beirut 


$ stays 
strong; 
Equities 


lose 3.8 


Negotiators working to save 
West Beirut from Israeli attack 
last night believed they could 
be close to the basis for an 
agreement. 

U,S. special envoy. Philip 
Habib suggested chat Palestin- 
ian leaders should withdraw as 
a multi-national peacekeeping 
force moved in. 


• DOLLAR rose to - a record 
FFr 6.995 (FFr 079), and to 
DM' 2*5165 (DM 2.5125) and 
SwFr 2.15 (SwFr 2.149), but 
fell to T25S.125 (Y25&25). 

Trade weighted index was 122.4 
(122.7). Page 32 


In Moscow, Soviet leader 
Leonid Brezhnev warned 
against using U.S. troops in 
Beirut hut urged the U.S. to 
try to end the Lebanon crisis. 
Back Page 


• STERLING lost 5 points to 
$1,708. It rose to DM 43 (DM 
4J95). FFr 1L95 <FFr 11.925) 
and SwFr 3.675 (SwFr 3.6725), 
but fell to Y440.75 from Y443. 
Trade weighted index was un- 
changed at 9L1. Page 32 


Falklands probe 

The Falklands inquiry will have 
access to secret intelligence re- 
ports and Cabinet papers, but 
publication of some sensitive 
material in the final report may 
be banned. Back Page 


• EQUITIES opened .well, bnt 
lost ground later. The FT 30- 
share index was down 3.8 at 
552.4. Page 31 


• GILTS were strong, with 
medium Issues showing gains of 
up to i. The Government 
Securities index was up 0J.7 at 
70.02. Page 31 


Boost for tanks 


New equipment to help British 
tanks and anti-tank- systems to 
lake on the T72, the main Soviet 
battle tank, was announced in 
the Commons. 


• JAPANESE Nikkei Dow 
Index closed 73.2 down at 
64161.91, its lowest since March 


17600 


c 10m poor in UK’ 


As many as 10m Britons, nearly 
one in five, experience a 
" poverty - stricken life,” the 
author of n Government- 
financed study of social depriva- 
tion said. Page 8 


IMato cuts plan 

Western nations proposed bis; 
cuts in military manpower in 
central Europe, aiming to revive 
East-West talks deadlocked for 
nearly nine years. Page 2 


7400 


7200 


70001 


{680Of- - 



Apr May Jim Jul 
1982 


Sftinsbury gift 


17. Dealers said selling centred 
on export-oriented stock. 

Page 30 


London Business School is to 
be given £1.25ra to establish a 
research centre, by Mr David 
Sainsbury of the J. Sainsbury 
supermarket chain. Back Page 


• GOLD, rose 57.5 to $314.5 In 
London. In New York, the 
Come* July dose was $322 
($311.3). Page 29 


Inquest refused 

The High Court in London 
refused to order a new inquest 
into the deaths of 13 young 
blacks in a fire in Deptford last 
year. 


• WALL STREET was down 
1.33 at 798.33 before the dose. 
Page 30 


# LORD WE1NSTOCK, elder 
executive -of GEC. the UK elec- 
trical group, is to meet AEG- 
Telcfunkcn workers to discuss 
GF.C\s role in the West German 
groupls rescue. Back Page 


Invasion urged 

Religious and military leaders 
in Iran called for an invasion 
of Iraq, to force acceptance of 
Iranian terms for ending the 
Gulf War. 


• INVESTMENT OVERSEAS 
produced record £26.3 7b n in 
UK invisible earnings in 1981. 
13 per cent up on. 1980. Page 6 


Ireland’s role 


It was fantasy to say Hip Irish 
Government should not be con- 
cerned with Ulster’s affairs. 
Lord Gowrie, Minister of Slate 
for Northern Ireland, said. 
Page io 


Party showdown 

Australian Opposition leader 
Bill Hayden called all Labour 
MPs to a meeting to decide 
■whether he or former union 
head Bob Hawke will lead the 
party. Page 3 


• MERCHANT SHIPPING con- 
tributed £1.1 lbn to the UK 
balance of payments last year, 
against £1.15 bn in 1980, said the 
president of the General 
Council of British Shipping. 
Page 7 

• U.S. ELECTRONICS manu- 
facturers account for almost a 
third of the industry's sales in 
Western Europe, says a report. 
Page 7 


World Cup 

Italy 2 (both Rossi), Poland 0 in 
World. Cup semi final. Inter- 
national Football Federation 
president Joan Havclange will 
be re-elected today. 


• ITALIAN BANKS will decide 
today whether to provide more 
fiuuk for Banco Ambrosiano to 
aid financially troubled over- 
seas associates. Page 34 

• IMPERIAL GROUP, whose 
interests . include tobacco, food 
and leisure, reported a 122 per 
cent increase in pre-tax profits 
to £65J>m an the half year to 
end April. Page 20; Lex, Back 
Pago 


England 329/3 

England were 329 for 3 (Lamb 
96 no, Botham S2 no) after the 
first day of the third Test 
against India at the Oval. 


• GENERAL ELECTRIC CO, 
the UJ5. industrial group, 
announced second quarter 
profits up 7 per cent to $465m 
(£272m), taking half-year 

profits to 8842ra, 6 per cent up 
on the first half of 1981. Page 23 


Briefly ... 

VC won by Korean war hero 
William Spoakman sold for 
£20.000 at Sotheby's. 

Man was charged with forgery 
in Greenwich after £5m in 
counterfeit notes was seized. 
Former President Nixon 
began, a three-day visit lo 
Britain. 


• SOUTH AFRICAN Breweries, 
the consumer goods manufac- 
turer and distributor, has 
raised 5100m (£5S.5m) from a 
group of seven U.S. banks. 
Page 25 


• COURT (FURNISHERS) 
raised second half pre-tax profits 
bv £220.000 to £2.95ra to bring 
ils lota! for the year to end 
March to £4.6m, against £3.76m. 
Page 20 


CHIEF PRICE CHANGES 

(Prices In pence unless otherwise 
RISES : 

Exch. llpc 1991 ...£S 7? + £ 

Amersham lnll, ... 230 t 6 

Avtma 318 B 

BPB 415 + 5 

BUck (P.t 345 + 10 

Bowlhorpe 277 + 12 

Brit- and Comm. 

Shipping 453 4- is 

Cornell ' Dresses ... 1R3 + 13 

Courts Funs. A ... TS + n 

Glaxo 736 ~ 10 

Grind] ays Bfc. 188 -*■ 13 

Ineheape 280 + 8 

Johnson - Cleaners 27fi + 7 

Scholes <G. H.) ... 372 + 12 

Sunlight Services ... 105 + 10 

Tcseo 68 + 3 

Utd. Parcels 20fi + S 

BP 270 + 4 

Camlet** 212 + 11 

Carles Cape I 169 -r 7 


YESTERDAY 

indicated) 

Jackson Ex. 116 + 10 

Marinex 103 + 6 

De Beers Dfd 204 + 20 

FALLS: 

Trcas. 3pc 13S6 ... fSli i 

BB and EA 60 - 5 

Booth (J.) (Bolton) 23 — 11 
Broken Hill Prop.... 386 — S 

Davy Cpn 115 •— ■ 6 

Granada A 174 < 4 

GUS A 470 - 10 

IHt 50 1 3i 

impl. Group 100 — 4j 

Moss Eng 67 — 5 

Quest Autorain. ... 25 — S 

Sheffield Brick 25 — 3 

TJ 102-4 

Thom EMI 390 •— 10 

Gold Petroleum ... S7 - 6 

Durban Deep 525 j- 16 

Geevor Tin 60 — 5 


-U.S. talks on 


new scheme for 


steel export licences 


BY GILES MERRITT IN BRUSSELS 


AN EEC export-licensing 
scheme for steel, devised by the 
European Commission as a 
means of regulating steel sales 
to the U.S. and ending the 
Reagan Administration's 

measures against Community 
steelmakers, will figure high on 
the agenda of top-level EEC- 
U-S. talks in Brussels. 

The irian, wild be put to Mr 
Malcolm Baldridge, the U.S. 
Commerce Secretary, when be 
meets Viscount Etienne 
Davignon, the EEC Industry 
Commissioner. and Heir 
Wilhelm Haferfcamp, the 
External Affairs Commissioner, 
today to discuss the worsening 
transatlantic steel row.' 

Mr Baldrige is accompanied 
by Mr Lionel Olmer, U.S. 
Under-Secretary of Commerce 
with repsonribilities for inter- 
national trade. 

The export quotas pSan has 
been refined since first being 
outlined to the U.S. in what 
turned out to be a vam hope 
of heading off the preliminary 
countervailing duties on EEC 
steed imposed by Washington in 
mid-June after complaints 
about European prices by U.S. 
steelmakers. 

The licences for steel exports 
to the U.S. would be panted 
by the European Commission 


under a system tightly linked 
to EEC rules on prices and pro- 
duction levels throughout the 

fVtmTni miity 

The quotas, like the steel 
production limits imposed by 
Brussels since November 1980. 
would be determined in rela- 
tion to a reference period 
establishing each steelmaker's 
traditional UB. sales volume. 

UB. officials indicated yester- 
day that Washington saw no 
legal barriers to such an official 
restriction of evports. whereas 
the self-restraint arrangements 
at industry level previously un- 
der discussion had risked in- 
fringmg U-S. anti-trust law. 

American reservations over 
the licence scheme therefore 
centre on the difficulties of 
securing EEC steel-producers’ 


compliance with the quotes, and 
&f the 


on the key question 
overall steel tonnages from the 
EEC that the system would 
govern. 

Brussels Co mmiss ion officials 
suggest that the licence scheme 
.would be operated in conjunc- 
tion with the production con- 
trols, and that the mflphaTi ictus 
for policing steel output would 
also, therefore, prevent possible 
fraudulent transhipments of 
EEC steel to the U.S. via third 
countries. 


The level of total EEC steel 
tonnages acceptable to the U.S. 
as the price for ending the 
measures against allegedly sub- 
sidised steel remains the crucial 
issue. 

The EEC position is that its 
traditional share of the U.S. 
steel market is some 6m tonnes 
annually, while U.S. offers are 
reported to put the acceptable 
level of EEC exports at only 
4.5m tonnes. 

Mr Baldrige's sudden, decision 
this week to visit Brussels for 
talks on steel is nevertheless 
being seen as an encouraging 
sign. 

It followed a U.S. Cabinet 
meeting that discussed UB.-EEC 
trade tensions, and clearly re- 
flects the importance that the 
Reagan Administration attaches 
to the statement warning Wash- 
ington against souring of trans- 
atlantic relations issued by EEC 
Heads of Government after their 
Brussels summit at the end of 
June. 

• The European Court of 
Justice has rejected a suit by 
Kloeckner, the West German 
steel group, contesting the pro- 
duction quotas set by the Com- 
mission in the second quarter 
of 1981. Kloeckner sought an 
increase in its quotas. 

UK steel consumers attack 
pricing policy. Page 8 


Iran’s plea to raise oil 
output threatens Opec 


BY RICHARD JOHNS IN VIENNA 


THE ORGANISATION at Petro- 
leum Exporting Countries' frag- 
mented agreemnt on control of 


production may A'oTlapse alto- 
gether. during thfroryai 


jamsafluris 
ministerial conference which 
starts in Vienna today. 

Iran’s level of output is 
expected to be the focal point 
of what threatens to be a 
strained and acrimonious meet- 
ing Other members also want 
an increase in their production 
quotas. 

The majority, however, still 
believe that the ceiling on col- 
lective production of 17.5m 
barrels a day orginally set In 
March, should be maintained 
for the time being to avoid 
the downward pressure on the 
reference price of 534 per 
barrel for Saudi light crude. 

The immediate problem fac- 
ing Opec is how to reconcile 
the output ceiling with actual 
output of the 13 members 
which rose to at least 18.2m b/d 
during June. Iran ha sheen 


pumping as much as 2.2m b/d, 
lm b/d above its allocation 
laid down by Opec in March. 
Iran however, has never, agreed 
id abide by the quota. 

On his arrival in Vienna, Mr 
Mohammed GharazL the Iranian 
Minister of Oil. refused to say 
how much his country was pro- 
ducing, saying that at was a war 
secret (with reference to the 
conflict with Iraq). However 
he implied that it was, indeed, 
in the 2 to 2.2m b/d range. 

Most Opec members agree 
that the production quota allo- 
cated lo Iran four months ago 
was too low. despite a general 
agreement that in the present 
market conditions the overall 
Opec ceDing of 17.5 b/d should 
not be raised. 

The strains within Opec were 
highlighted on Wednesday by 
Venezuela’s threat, primarily 
made, it seems, for domestic 
consumption, to increase its out- 
put if other members did not 
respect their quotas. 


ir Humberto Calderon Bert!, 
Venezuelan Minister of 
and Energy, s$id 
tfezueia would have no pr&b- 
Ln exporting an additional 
;,000 . <o 400.000 b/d above 
its { present 15 -b/d allocation. 

Libya wants its quota raised 
to lm b/d, the level maintained 
last month, against an alloca- 
tion of 800.000 b/d in March. 
Both Nigeria and Indonesia 
also feel entitled to a larger 
volume. 

Opec’s monitoring committee, 
which has been meeting in 
Vienna this week, will recom- 
mend to the full ministerial 
conference maintenance of the 
17.5m b/d ceiling and urge 
adherence to it on a monthly, 
as opposed to a quarterly, basis. 

Nevertheless, Venezuela and 
Indonesia believe that a decline 
in the rundown of ail stocks in 
industrialised countries should 
allow an output of 19m b/d by 
September. 

BNOC oil find. Page 6 


Train drivers step up picketing 


BY PHILIP BASSETT, LABOUR CORRESPONDENT 


TRAIN DRIVERS yesterday 
sharply stepped up picketing in 
the rail strike. While their 
action seems to have checked 
the drift back to work by some 
drivers, it failed to prevent 
British Rail again slightly in- 
creasing the number of train 
services it was able to run. 

BR decided yesterday to main- 
tain services on the network 
next week. 

It reported the increased pic- 
keting, but said that it was 
orderly, in the main. Menfters 
of the Associated Society of 
Locomotive Engineers and Fire- 
ment concentrated their efforts 
at depots which have so far 
seen no pickets. 

The increase bad a marked 
effect on BR’s early services. In 
the period up to 10 am, it was 
able to run only 464 passenger 
trains, compared with 497 in 
the same period the previous 
day. By 2 pm. as picketing 
cased, BR’ S position had slightly 
improved with a total of S19 
trains having run, againbt 835 
by the same time the previous 


day. 

By 4 pm, the effect of the 
picketing had lessened consid- 
erably, so that BR was able to 
tally 1,176 trains in all com- 
pared with the previous day’s 
figure of 994. The projection to 
midnight was 1.630, but this 
appeared likely to fall closer to 


BR’s long-term finances. 
Back Page 

U.S. rail dispute. Page 4 
Other labour news. Page 9 


Wednesday’s actual figure of 
1,527. 

Services varied in the regions. 
By 4 pm, Western region was 
still the worst hit, with only 
seven passenger and four 
freight trains running against 
nine and 12 the day before. The 
highest figures were on the 
Eastern region, which ran 373 
passenger and 44 freight trains, 
compared with 205 and 32 the 
day before. 

The number of drivers work- 
ing showed a slight increase to 
621 by 4 pm, against 553 the 


day before. Yesterday’s figure 
was made up of 351 Aslef 
members and 270 members of 
the rival National Union of 
Railwaymen, against 291 and 
262 respectively the previous 
day. 

However, the overall pro- 
jected figure of 750-800 is 
likely to compare closely with 
the 765 total on Wednesday, 
indicating that the drift back 
to work may have been halted. 
This seems to have been 
achieved partly by picketing, 
and partly by Aslef officials 
persuading drivers at such 
depots as Bury and Bolton, 
which had voted to call off the 
strike, to reimpose their action. 

The BR board executive’s 
decision to maintain services 
next week, came with an offer 
to drivers of an inducement in 
the form of possible overtime 
earnings at the weekend if they 
ran trains on Sunday over routes 
which have remained open this 
week. 

• Mr Cliff Rose, BR board mem- 
Conturaed on Back Page 


CONTENTS 


Cost of cashless future: Europe’s Bank 

workers 19 

Politics Today: If it were as easy as 

that IS 

Commercial Law Report: International 

patent fees 

Management: New strategy centre at 
London Business School 16 


Technology: Designing the “human” 
computer 16 


Lombard: St Michael and the pension 
funds 19 


Survey: Wales 11-14 

Editorial Comment: Polish debt; TJ.S. 
tax rate 18 


American New* M . 

4 

Foreign Exchange* 

32 

Parliament 

10 

TV and Radio 

15 


25 

Gold Ma riots 

29 

Property 

— 28 

Unit Trusts: 


Aria , 

17 

Inti. Companies ~ 

23-2S 

Property Advtg. 

... 26-28 

Authorised 

32 


22 

Leader Page 

18 

Racing 

IS 

Others 

33 


22 

Lctwre - 

18 

Share Information 34, 36 

Weather 

3G 


29 


36 

Stock Markets: 


World Trade News 

4 


20-22 

Lombard 

19 

London 

... 31 

World Value S 

31 


17 

London Options ... 

22 

Wall Street .. 

... 30 

INTERIM STATEMENTS 

Entertain. GuMs 

17 

Management 

18 

Bourses 

- 30 

Imperial Tobacco 

21 

Ewiwnarkat* 

23 

Men & Matters ... 

18 

Technology .... 

16 

ANNUAL STATEMENTS 

European Mm ... 

2 

Mining — 

22 

UK News: 


Bremer 

20 

Eunpun Options 

21 

Money Maricets — 

32 

General — 

...fc7.8 

Charter Cons 

20 

FT Actuorias 

31 

Overseas News ... 

3 

Labour 

9 

RAS 

24 


For Iciest Shore Index plume 01-246 8 056 


Wall St 
selling 
hits big 
banks 


By David Lascelles in New York 


U.S. BANK shares came under 
heavy selling pressure on the 
New York Stock' Exchange 
yesterday as the repercussions 
of Monday’s collapse of a bank 
in Oklahoma bred fears of 
further upheavals in the finan- 
cial community. 

The share price of virtually 
every major U.S. bank was 
affected. By noon some of the 
largest — Chase Manhattan, 
Continental Illinois, Chemical 
Bank, Citicorp, Bankers Trust 
and J. P. Morgan — hit their 
lowest trading levels in a year 
or more. 

The sell-off was fuelled in 
part by the retreat of the Slock 
Market as a whole. It clearly 
marked a further deterioration 
of investor-confidence in U.S. 
financial institutions, however, 
and extended a decline which 
has been evident since the huge 
default by the securities firm 
Drysdale Government Securities 
last May. 

The resurgence in U.S. 
interest rates, with the collapse 
of Penn Square Bank of 
Oklahoma on Monday, entailing 
further sizeable losses for some 
banks, have made things worse. 
Fears on the possibility of more 
failures are being expressed 
publicly and privately along 
Wail Street. 

Shares in Chase Manhattan, 
which was hit by both the Drys- 
dale and Penn Square failures, 
fell another 1} points, to about 
351, by noon yesterday, extend- 
ing a dramatic decline from its 
55 high just two months ago 
before news broke of Drysdale’s 
losses. 

Continental Illinois, whose 
second-quarter earnings wiU be 
wiped out by the Penn Square 
failure, suffered its third day of 
heavy selling. At noon it had 
lost another point, at 18}, having 
its lowest level since 1976. Only 
a few months ago it traded at 40. 

The sell-off was not confined, 
however, in banks which have 
been directly affected by well- 
publicised shocks. Citicorp was 
trading at a 52-week low of 21 J. 
J. P. Morgan, parent of Morgan 
Guaranty . Trust Company, 
among the most respected 
banking names on Wall Street, 
sank more than 2 points to 462 
at noon, compared with its 52- 
week high of 596. 

The financial community's 
fears centre not so much on 
the security of big bank names 
but on the small failures which, 
as recent experience has shown, 

Continued on Back Page 

Continental Illinois paper 

tumbles in Euromarkets. 

Page 23 


ICI issues writ 
over Government 


tax concessions 


BY SUE CAMERON 


IMPERIAL Chemical Industries 
has taken the unprecedented 
step of issuing a High Court 
writ against the Government 
over special tax concessions to 
be given to its oil company 
rivals. 

ICI. Britain's biggest manu- 
facturing company, claims the 
tax concessions are nothing 
more than government subsidies 
and will therefore breach EEC 
rules under the Treaty of Rome. 

The Government itself made 
clear last night that it would 
figh t ICI every inch of the way. 
and it is apparently confident 
of winning. But within White- 
hall there was grave concern 
about the wider legal and con- 
stitutional implications of the 
company’s move. 

Fears were expressed that 
even the most ardent supporters 
of the EEC might change their 
views if thgy found the will of 
the British Parliament, as ex- 
pressed in the Government’s tax 
decisions, could be overturned 
in the courts. 

The tax concessions them- 
selves are embodied in the 
Finance Bill now going through 
the Commons. They will 
Shell, Esso and British 
Petroleum to sell low-priced 
ethane gas from the North Sea 
to their petrochemical subsi- 
diaries for use as feedstock. The 
plan is that the Inland Revenue 
should accept a low ethane 
transfer price between the oil 
companies and their subsi- 
diaries for tax valuation pur- 
poses.' Once agreed, the tax 
reference price will hold for 
periods of up to five years. 


ICI wiU gain nothing from 
the concession because it is not 
the chemical subsidiary of a 
North Sea oil company,, and it 
uses oil-based naphtha, not 
ethane gas. as a raw material - 
at its huge Wilton petro- 
chemicals complex on Teesside. 

The company has warned that 
the tax concessions to its rivals 
will ultimately force it to shut 
the Wilton complex with the 
loss of 9.000 jobs. But last 
night it seemed ministers were 
not taking the threat too 
seriously. 

It appears, however, that 
Whitehall is now grudgingly 
admitting that the lax conces- 
sions were decided on only after 
Shell and Esso had threatened 
to abandon their £500m petro- 
chemicals project at Moss- 
morran in File and after BP 
Chemicals threatened to shirt its 
Grangemouth petrochemicals 
plant in Scotland. 

The lax concessions will mean 
that Shell. Esso and BP nil! 
face comparatively small bills 
for petroleum revenue tax on 
their ethane gas sales and their 
chemical subsidiaries will en- 
joy the benefit of cheap raw 
materials. They are evidently 
expecting to pay weU under 16p 
a Iherm for their ethane com- 
pared with the current price of 
33p a therm ICI is having to 
pav for its naphtha. 

ICI has been lobbying the 
Government for months over the 
tax concessions. Earlier this 
summer it demanded a special 
deal over its purchases of 
naphtha 


Interest rates hint 


BY MAX WILKINSON, ECONOMICS CORRESPONDENT 


AN UNAMBfGOUS signal was 
flashed from the Bank of 
England yesterday that it 
would like the clearing banks 
to cut their base lending rates 
by 2 a percentage point to 12 
per cent. 

The signal was an l point 
cm in (he rate at which the 
rBank supplies assistance to 
the money markets through 
buying very short dated bills 
from the discount houses. 
This follows a series of cuts 
this week on the rates for 
medium and longer dated 
bills. 

Hie key rate on the so- 
called “band 1“ bills bad 
remained unchanged at 132, 
per cent since June S, when 
base rales were reduced to 
their present 12J per cent. 
Base rates were last at 12 
per cent in the summer of 
1981 but they have not been 
Continued on Back Page 

Money Markets, Page 32 


Z',% 


13 Si 




12 


\ STERLING 7-day 
INTERBANK 
RATE \ 


AAv, 


BANKS’ BASE 
RATE 


JUNE 

1982 


JULY 


£ in New York 

t 

- July 7 


Previous 


Spot :*1,7160-71BQ |S1,7140-71S0 
1 month 0.42-0.47 pm 0.42-0.40 pm 
3 months 1.53-1.58 pm >1.5 5- 1.40 pm 
12 months 5.15-5.25 pml4.65-4.75 pm 



2?. Berkeley Squaie. London V’lA 4AX 

The worlds I aigest distributor 
of earthmoving equipment 


Sales, service and parts facilities in . . . United Kingdom and Eire. Angola, Australia, Bangladesh, 

Patninwi Snfn..... . _1_ T- -r.> . — 



Spain. Tanzania, Zaire. Zambia. Zimbabwe. 


i r 


1 , 
E 


3 - 
1 
) 
t 

l 


: i 


- =* i 


:/ 









- 


EUROPEAN NEWS 


Financial Jimes Friday Jute 9 1®S2. 


Spadolini pledges action on wage indexation system I French Goyernment 


BY JAMES BUXTON IN ROME 

SIG GIOVANNI SPADOLINI, 
the Italian Prime Minister, said 
yesterday that his government 
would 'act to reduce the effect 
of the scala mobile wage indexa- 
tion system as part of its 
economic package to stopt he 
explosion of the public sector 
deficit. 

But it would insist that the 
employers in the state sector 
who have said they will cease 
to honour the scala mobile 
recoke their decision. 

The Prime Minister was 
addressing a packed session of 
the Senate in a crucial speech 


on which the future of his year- 
old government depends. 

Tlie need for (he Republican 
Premier to' state his programme 
to parliament was caused by the 
serious split in his cabinet 
between Christian Democrats 
and Socialists on the wage 
indexation Issue. 

It will not become clear until 
today, when the Senate debates 
the issue, whether the Prime 
Minister's statement will suffi- 
ciently satisfy' both the main 
parries in his coalition and 
enable his government to 
continue. 


But while the Socialists were 
Initially pleased with what Sig 
Spadolini said, the Christian 
Democrats were disappointed 
and said he should have been 
tougher. 

Sig Spadolini made a strongly- 
worded plea for an end to the 
intense inter-party bickering 
that has affected his govern- 
ment for the last three months 
and prevented it from introduc- 
ing the urgently needed econo- 
mic package. 

He asked his coalition part- 
ners to unite on a common 
programme. “ We do not intend 


to- retreat,” he said, “but it 
would be impossible to go on 
Without commitment from the 
coalition members." . , 

The latest crisis was provoked 
by the decision of Inters ind, 
which represents the manage- 
ment in the main state in- 
dustrial concerns to follow Con- 
findustria, the private em- 
ployers' association, in saying 
they would cease- to honour an 
agreement on scala mobile when 
it expires next February. 

Sig Spadolini. supported by 
the Socialists, wanted to order 
Interslnd to back down. The 


Christian Democrats said they 
would only accept this if the 
Government acted immediately 
to reduce the effects of the 
system, and the unions agreed 
to discuss it. 

Yesterday Sig Spadolini re- 
iterated the need for the public 
sector companies to back down. 

He. said that the package of 
measures to ent the public sector 
deficit which has expanded far 
beyond the Government's 
declared limits, would include 
both the raising of the VAT end 
a measure to remove the effect 
of this tax Increase from the 


basket on which the scala mobile 
index is based. 

He said he intended to reduce 
the deficit, by at least LS,600bn 
(£3. 3 bn) to Llfl.OOObn. This 
would be done by rises in. 
charges for health and social 
security cuts in transfers to 
local authorities, and a l per 
cent cut in real terms in 
Government, current spending. 

The package would form part 
of the Finance Bill for next year 
which must normally be pre- 
sented by September SO. In this 
case it would be presented by 
July 31. 


expected to ease 
price control roles 

BY TERRY POOSWORTH IN RAWS 


Nato tables plan for force cuts in Europe Bonn braced 


VIENNA — Western nations 
yesterday tabled a formula for 
substantial cuts In military 
manpower in Central Europe, 
aimed at reviving East-West 
negotiations that have been 
deadlocked for nearly nine 
years. 

The North Atlantic Treaty 
Organisation plan envisages 
reducing Nato and Warsaw 
Fact land and air forces in the 
central area of Europe — 


including the two German 
slates — to .900,000 men each in 
four stages spread over seven 
years. Previously the West had 
proposed reductions in two 
phases, with a separate agree- 
ment for each. 

The proposal imposes obliga- 
tions from the outset on all 
countries with troops in 
Central Europe to reduce their 
forces to help reach the overall 
ceiling. * conference officials 
said. 


1 


This is intended to answer 
Communist complaints that 
earlier Western proposals failed 
to include a clear commitment 
to limit growth of the West 
German army, Nato's biggest 
single fighting force in Europe. 

The revised formula, 
announced by President 
Ronald Reagan during his visit 
to Bonn last month, was 
presented by Herr Walter $oss. 
the West German envoy, in the 


form of a draft treaty at the 
312th plenary session of the 19- 
nation troop reduction -con- 
ference. 

The 900,000-man total on 
each side, with a sub-ceiling of 
700.000 for ground troops, has 
already been agreed in 
principle by both sides. But a 
dispute over present force 
strength and ways of monitor- 
ing a reduction accord have 
blocked progress. 

Reuter 


Arrests deal blow to Solidarity radicals 


BY CHRISTOPHER BO BIN SKI IN WARSAW 


A SERIES of arrests in recent 
weeks have dealt a serious blow 
to the radical wing of the sus- 
pended Solidarity movement’s 
clandestine organisation in 
Warsaw. 

The Polish authorities say 
they have arrested some of 
those involved with the secret 
radio transmitter in the capital 
which first went on the air to- 
wards the end of April and 
broadcast once a week until 
last month. 

Among those detained Is Mrs 


Irena Romaszewska, one of the 
announcers and a worker at the 
colour television factory In 
Plaseczno just outside Warsaw. 

Also arrested is Mr Roger 
Noel, a Belgian whom the 
press here has accused of bring- 
ing radio equipment into 
Poland hidden among medical 
equipment destined for the 
internees. 

Solidarity has at least two 
other transmitters at work in 
Poznan and Gdansk. The 
equipment in Warsaw was 


seized by the authorities same 
weeks ago. 

- Apart from transmitting 
news bulletins once a week, the 
broadcasts were seen by Mr 
Zbigniew Romaszewski, a 
Solidarity leader who claims to 
have organised the radio, as a 
m eans of . communication 
between factories in case of a 
general strike. 

He and the Solidarity Inter- 
factory Workers Committee, of 
which he is a leader, represent 
the radical wing of the union 


in Warsaw. They claim to 
represent some 60 plants in the 
Warsaw area and have been 
urging a general strike in the 
autumn. However, Mr Zbigniew 
Bujak, Solidarity's chief in the 
capital, is less enthusiastic and 
preliminary soundings among 
workers have not shown support i 
for such a course. 

The arrests have also affected 
some Warsaw underground pub- 
lications and. four printing 
works have been discovered by 
the authorities recently. 


David Buchan reviews a loyal Soviet ally’s economic reforms 

New growth in Bulgaria’s garden 


TAKING Voltaire’s advice, the 
Bulgarians have kept their 
heads down and cultivated 
their garden. They are now 
more prosperous than at any- 
time in their chequered Balkan 
history. But the chilly East- 
West winds that are blowing 
even in this remote corner of 
Europe make that prosperity 
precarious. 

Bulgaria does more (70-75 per 
cent) of its trade inside 
Comecon than any other Com- 
munist bloc country. This insu- 
lates it to a large degree from 
President Reagan’s economic 
sanctions, but makes it more 
dependent than any other 
Comecon country on the Soviet 
Union, at a time when Moscow 
is increasingly having to look 
after its own hard-pressed 
economy. 

Uniquely in Eastern Europe, 
Bulgaria has a declining foreign 
debt and a hard currency 
surplus. This gives it available 
cash Jo develop trade with the 
West, just when for political 
reasons, such trade ties look 
most vulnerable. It also happens 
1o have surprisingly good rela- 
tions with its two Nato neigh- 
bours, Greece and Turkey. But, 
as Moscow's smallest and most 
loyal European ally, it is and 
mu slhe the first to toe any 
confrontational line the Kremlin 
nti'jhl order. 

For Hu* moment, Bulgaria and 
its loader. President Todor 
Zhivkov, are being amply 
rewarded For their loyalty. This 
faithfulness is no hardship to 
them. Bulgarians have always 
been the most russophile of the 
Soviet Union's neighbours — io 
the paradoxical extent of still 
having in the centre of Sofia 
perhaps the only remaining 
public statue of a Tsar. (It is 
of Alexander II who weighed in 
on rhe Bulgarian .side against 
the Turks in IS7S.) 

The Bulgarians deny there is 
any favouritism. But equally 
there is no indication that the 
cuts in Soviet oil imposed on 
several other Comecon coun- 
tries are affecting Bulgaria. It 
still appears to he importing 
liM3m tonnes of Soviet oil, 
about 90 per cent of domestic 
needs- Those needs are declin- 
ing. since Bulgaria has pushed 
its nudear energy programme 
to the point where it now pro- 


vides 25 per cent of all elec- 
tridty generation (a ratio 
matched in the West only by 
France and Belgium). 

Add to this the oil in which — 
handily for Bulgaria— major 
Opec countries are currently 
choosing to pay for Bulgarian 
goods and services, and it is 
clear Bulgaria presently lias 
quite a lot of oil for re-export 
Exactly how much the 
Bulgarians have slopped reveal- 
ing. but given the fact that 
Soviet oil prices lag behind 
world levels, the re-export, 
mainly refined product and 


li,000— 


Euromarkets in December 1979. 
Whether or not President 
Reagan persuades the West to 
restrain lending to the East, 
Mr Vesselin Bankov, first deputy 
president of the Foreign Tirade 
Bank (the country’s borrowing 
arm), says Bulgaria has no 
intention of further fioandal 
borrowing until interest rates 
come down. 

At the same time, he admits 
coyly, these rates have made it 
“not unprofitable for us to 
place our spare funds on the 
short-term market in the West.” 

Bulgaria dearly has no in ten- 


800 — 


Convertible 
jjcurrencyj 
ip Trade M 
1 balancers 


u 1979 1980 1981 
-^Bulgarian National Bank 


petrochemicals, is probably at a 
decent profit. 

With a helping hand from 
Moscow and their own initiative, 
the Bulgarians were selected as 
the main electronics exporter 
within Comecou, a S2bn 
(H.5bn) a year business mainly 
directed at the Soviet Union — 
and which, incidentally, covers 
their Soviet oil bill. The other 
handsome benefit Bulgaria 
draws from Comecon specialisa- 
tion is its assigned role as 
builder of fork-lift trucks for 
the bloc. Nearness to left-wing 
and oil-rich markets, such as 
Libya, Irac and Iran, is a further 
geopolitical advantage. 

The upshot is that Bulgaria 
has been able to fill its shops 

at home, mantain a sizeable 
surplus on its hard currency 
trade without cutting imports, 
and reduce its indebtedness to 
Western banks. No other East 
European country can claim 
that combination. 

Bulgaria last borrowed on the 


Debt to the West r 




I 1979 1980 1981 
It Ur*fed Nortons Econcynic Cbmrrusyorr 
for Europe 


tion of following Romania, 
Hungary and maybe Poland into 
the International Monetary 
Fund (IMF). 

But, though anchored firmly 
in the Comecon system. Bul- 
garia is taking some precautions 
against harsher rimes ahead 
and. perhaps, the day when the 
Soviet Union will keep its oil 
for itself. In a sense harsher 
times are already upon Bul- 
garia; a country rapidly indus- 
trialising from a peasant ' past 
which has found that dearer 
raw materials and a no-la nger- 
rising ■ workforce have put a 
premium on productivity. The 
average annual growth rate in 
1976-80 was S per cent, but that 
forecast in the current 1981-85 
plan is only 4 per cent 

Bulgaria has quietly launched 
something called a “new 
economic mechanism” this 
year. The label is consciously 
borrowed from the Hungarians, 
but its substance goes less far. 

One main aim is to make 


central planning less cumber- 
some. Ministries are to confine 
themselves to setting general 
targets and individual com- 
panies are to make their own , 
“ counterplans,” filling in /the^ 
details of how the targ^tsaaye j 
to be met. - " •f 1 

The other . aim is to tyake 
•Bulgarian - companies V J&nd 
more’ on.' their own feet. Subsi- 
dies are to be cut. In theory, 
weaker companies will go to the 
wall, but Officials insist ho 
unemployment will result 

Wages .are' to. be linked to 
output, in the hope that workers 
will thus increase their produc- 
tivity. But a major difference 
from Hungary is that Bulgaria 
has only very limited plans, to 
increase the scope of its private 
sector. So fir. only minor 
private operations have started 
up In services, mainly - In 
tourism. 

The internal contradictions in 
the Bulgarian reforms, such as 
the fact that central planners 
are not going to lose their 
hold over allocation of foreign 
exchange, raw materials, energy 
and fixing prices, could reflect 
uncertainty in the government 
and party about how far to go 
down this new road. Some 
observers see a group of 
Politburo reformers in Mr 
Andrei Luka no v, Mr Ognyan 
Doinov, and Mr Todor Bozhinov, 
set against conservative 
ideologues like Mr Alexander 
Lilov and Mr Stoian Mikhailov, 
with President Zhivkov and Mr 
Grisha Filipov, his Prime 
Minister, floating somewhere in 
between. 

Officials in Sofia insist the 
economic reforms are being 
made for internal reasons — not 
just to have a more flexible 
system to deal with Western 
companies. So they will, go 
ahead regardless of the current 
East-West tensions. But some 
pulling back ife already evident 
in cultural policy, which Mr 
Zhivkov’s daughter Lyudmila 
opened up to Western influence 
until her unexpected and, early 
death last year. 

President Zhivkov has- learnt 
in his quarter of a .century in 
power- to read -the wider poli- 
tical climate. He may want 
more time to check the mood 
in Moscow and see how the 
East-West situation develops 
before committing Bulgaria to 
a new course. 


for fight 
on defence 

By Jonathan Carr in Bonn 

THE WEST GERMAN Gov- 
ernment Is bracing Itself for 
sharp criticism from two 
opposing sides — the UJS. 
Administration and left-wing 
Bonn parliamentarians — over 
the proposed defence budget 
for 1983. 

According to estimates 
approved by the Cabinet this 
week, defence spending next 
year will rise by 4JL per cent 
in nominal terms to DM 
46.1 bn (£10.7bn). 

It is not expected to be 
long before Washington makes 
dear its concern that Bonn 
will thus be falling well 
below the Nato pledge, made 
. in 1978, to try to boost 
defence spending by 3 per 
cent annually, in real terms. 

At the same time, members 
of Chancellor Helmut 
Schmidt's Social Democrat 
Party (SPD) are already not- 
ing sourly that the defence 
budget in 1983 will be rising 
by more than double the aver- 
age Increase for the budget as 
a whole — 1.9 per cent in 
nominal terms. 

In particular, the SPD 
points' out that at a time of 
record unemployment, next - 

- year's labour and social affairs 
budget allocation is bein&cat 
by 9.8 per cent to DM 532 bn 
(£12.4bn) and the sum for the 
Youth and Family Affairs 
Ministry by 3.1 per cent to 
DM 1821m (£42bn). 

Open criticism is being 
mated in advan ce of the sum- 
mer break, but SPD deputies 
seem bound to make their 
.views dear when the budget 
is . given its first reading on- 
Igeptember 14. 

7. Bonn" has long been Irrita- 
ted by U.S. criticism that the ‘ 
West Germans ar.e ' “missing 
the 3 per cent target” It 
points Oat that, throughout 
the 1970s Its defence expen- 
diture rose at an . annual 
average rate of 2.8 per cent 
In real terms, while that of 
the U.S. -fell hy a real 1.9 
per cent annually over the 
same period. . . . 

Experience has also shown 
that (he defence budget has 
a tendency to overrun the 
original estimates. 

Schmidt presses 
Dutch over 
Cruise missiles 

By Walter Ellfe in Amsterdam 

CRUISE MISSILES were the 
main item on the agenda 
when Chaneeflor Helmut 
Schmidt arrived in The 
Hague yesterday to begin the 
first offidal visit by a West 
German head of government 
to the Netherlands since 
1964. 

He Is anxious to persuade 
Mr Dries van Agt, the Dutch 
Prime Minister, to agree to 
statiOD 48 of the controversial 
missiles in the Netherlands as 
soon as possible. ' 

Mr van Agt' own Christian. 
Democrat Party Is divided on 
the issue, its coalition 
partners. Democrats 66, wants 
to wait to see how East-West 
tensions develop, and the 
Labour Party is totally 
opposed. Only the centre- 
right Liberals are in favour, 
and even they contain several 
doubters. 

At least half of the Dutch 
population, according to 
opinion polls. Is unhappy j 
about the missiles, { 

- The Government has taken 
the view that . a decision 
should depend on the out- 
come of the East-West talks 
on medinm-range unclear 
missiles which began In 
Geneva last month. 




Mr Arsenis . . ■ now a Minister 
too 

Arsenis to 
stay Greek 
bank chief 

By Victor Walker In Athens 

MR GERASSIMOS ARSENIS is 
-to retain his post as governor 
of the Bank of Greece despite 
his appointment as Nations L 
Economy Minister in weekend 
government changes. This was 
announced- by a government 
spokesman a few hours- after 
mediation by Mr Arsenis bad . 
settled Greece's 43-day bank 
strike. 

The spokesman said adminis- 
tration of the. Bank of Greece 
would he carried out by two 
deputy governors — Mr Dimi- 
trios Haliitias and Mr Evangelos 
Kourakos. Both are long-term 
senior officials of the bank. 

The dual role for'Mr Arsenis 
is expected y>, ;dr^w 'criticism 
£so*n the! opposition New Denu*- 
6racy Party on tbs grounds of 
a possible conflict, of res poos i- > 
bilities. The Bank of Greece 
traditionally has kept aloof 
from government policy-makhig, 
and the former governor of 
the bank. Professor Xenophon 
Zolatas, had considered it his 
duty to be prepared to criticise 
government decisions in the 
economic sector with which he 
did not agree. 

Mr Arsenis settled the bank 1 
strike on only. his second full 
day as a minister with a com- 
promise formula that offered 
the unions more, than the banks 
had been prepared to grant, hut 
only from next year. 1 

The unions accepted the ceil- 4 
ing on wage rises this year — 

| in the context of -a new unified : 
salary scale for all banks— on 
which the bank governors had 
insisted from the beginning. 
Wage rises this year are not 
to exceed 17 per cent for staff 
earning above Dr 30,360 (£253) 
per month, but may rise by up 
to 25 per cent for those earning 
below that figure. Mr Arsenis 
said that this kept the award 
for this year within :the- limits 
set by the Government’s incomes 
policy. 

From next January, however, 
those receiving a maximum in- 
crease of 17 per cent will 
receive a supplementary rise 
bringing the total to 25 per 
cent Also from January, there 
will be additional long-service 
payments, and the period of 
military conscription served by 
male employees will count as 
work with the bank. 

The unions had "sought to 
have the unified salary system 
apply without any ceilings and 
also wanted jobs held elsewhere 
before joining a bank to count 
as service with the bank in the 
calculation of salary. 

They said that allhougfa the 
formula did. not satisfy their 
demands, it covered the basic 
points. It was accepted, the 
unions said, as a practical 
demonstration of willingness to 
co-operate in the new cabinet's 
efforts to bring about economic 
recovery. 


THE FRENCH Government us 
expected to bow to pressure 
from industry and commerce- 
today on some adjustments in 
its Draconian price control 
regulations. 

Officials confirmed last night 
that the measures would bfr 
announced after the meeting of 
the National Prices Committee, 
which brings management and 
unions together with the 
Government in a discussion 
forum. But they emphasised 
that the changes being 
envisaged were meant to deal 
only with hardship cases. 

The adjustments come against 
a background of hardening 
opposition to the Government’s 
. prices policy, which was 
announced In the wake of the 
devaluation of the franc last 
month. Margins were frozen 
completely from June 11 to the 
end of October, with the excep- 
tion of a limited n umber of 
products, including energy 
prices and fresh foods. 

Yesterday, the French 
Patron at, the employers’ 
association,- denounced the 
freeze as an ” economic 
disaster.” expressing its total 
disagreement with the Govern- 
ment The national representa- 
tive body , for the distribution 
profession also warned that it 
would have “disastrous” con- 
sequences. 

The main, adjustment being 
considered by the Government 


is on the blockage of promo- 
tional prices. Companies run- 
ning big -promotions will now 
be able to change back to the 
former price of the product 
before stocks run out. 

In addition, the system oE 
“ client-by-clicnt H control, which 
means that prices have to be 
charged at the level of the 
previous contract between ihe 
supplier and customer, is to be 
dropped. This means that com- 
panies will be able to charge 
the price that existed on July 
11, rather than prices which, in 
some, cases, could refer to 
previous orders several years 
ago. 

From the beginning of the 
freeze, the Government has 
promised negotiations on 
specific cases. But the Pafronat 
wanted much larger concessions, 
including the immediate ability 
to recuperate raw material and 
energy costs. the rapid 
authorisation for new product 
prices, and the abandonment oF 
the system under which new 
taxes are included in the frozen 
price. 

While accepting marginal 
adjustments, however, the 
Government is sticking to Its 
short-term freeze startegy, while 
pla nning a system of controlled 
liberalisation in the period 
afterwards. Ministers are now 
talking of an lS-month dose of 
austerity aimed at putting the 
French ’economy into shape. 


Chirac victor in dispute 
over Paris reorganisation 


BY TERRY DODSWORTH IN PARIS 


M JACQUES CHIRAC. Mayor of 
Finis and principal opposition 
leader in France, has emerged 
with a victory on points from 
the first skidmishes in the fight 
over the Government's reform 
plans for the city. 

In a measured attempt to de- 
fect the widespread. -criticism 
that Has rained down on the 
Government, M Pierre Maurey, 
the Prime Minister, has come up 
with compromise proposals leav- 
ing substantial powers in the 
hands of the Mayor. In particu- 
lar; the Mayor will retain the 
sole right to collect local taxes: 
. .M ■Mauroy's initiative is ‘de- 
signed to cut. the ground -from 
updetjtf Chirac, the leader, -of* 
the new-GaulBst RPR. party, as 
he - mobilises his forces, for an 
afFout attack on the proposals. 

The Government has been 
made embarrassingly <aware in 
the past few days that it was 
fighting an unpopular battle 
with most of .the Parisian 
public. Opinion polls show a 
large measure of approval for 
M Chirac's administration of the 


city, and a wide cross section 
of tile Press has condemned the 
plan as a clumsy attempt tn 
deprive M Chirac of a national 
political platform. 

M Mauroy. in effect, is now 
handing back a large part of 
this platform to M Chirac, who 
has shown a superb showman's 
grasp of the public relations 
possibilities of his job. It re- 
mains to be seen, however, if 
the Mayor will accept the olive 
branch and allow the conflict to 
die away. 

Tie root of the problem is 
■that the Government is still in- 
sisting that it will press ahead 
with tiie establishment of 20 
locally-elected district -councils 
.in the city with their own 
mayors and local responsibili- 
ties. 

While these councils will not 
have the sweeping powers en- 
visaged under the original 
plans, they are likely to repre- 
sent a considerable counter- 
weight to M Chirac's authority, 
especially in Socialist areas of 
ihe city. 


Former Ministers call on 
Balsemao to resign 


BY OWN* SMITH IN LISBON 

TWO - FORMER' Portuguese 
Cabinet ministers, both promi- 
nent Social Democrats, have 
sent a letter to. their party com- 
mittees calling for the resig- 
nation of Sr Francisco Balse- 
oaao, the Prime Minister and 
president of the party. 

He is accused of failing to 
improve the country’s economic 
situation. The inflation rate -has 
been more than 20 per cent for 
over a year, the balance of pay- 
ments showed record $2.6bn 
(£1.5bn) deficit last year, and 
agricultural and industrial pro- 
duction have slumped. 

For Sr Eurico de Melo, Min- 
ister of tiie Interior In the Gov- 
ernment of the late Sr Francisco 
sa Carneiro, and Sr Anibal 
Cava co Suva, Finance Minister 
in the same - administration, it 
is their second attempt to dis- 
lodge Sr Balsemao. They spear- 
headed attacks on him last sum- 
mer, causing Sr Balsemao to 
resign temporarily as a ploy to 
silence his critics. His oppo- 
nents, largely conservatives, re- 
sented the Premier's concilia- 
tory style. . 

Sr Boise mao's tactic worked, 
for his- adversaries had no alter- 
native candidate to offer. How- 
ever, his position remains deli- 
cate. 

The .eoonotme crisis and Sr 
Baisemao’s low-key style has 
led to persistent speculation in 
big party that another Premier 


MEPs 


“THERE IS no reproach to be 
levelled against members,” said 
a rather distressed PieLer Dan- 
kert. president of the European 
Parlijment. yesterday in an 
attempt to Convince sceptical 
journalists that the parliament’s 
-134 representatives have not 
been growing fat on fiddled ex- 
penses for the past three years. 

Mr Dankert has been waging 
a losing battle for the past few 
months to limit the damage in- 
flicted on the parliament's 
reputation by leaks of an explo- 
sive report by the Community's 
court of auditors. 

This study of the parliament's 
cash office during 19S1 has led 
to the Transfer of two officials 
to other duties and lurid media 


reports of members drawing 
hefty -advance expenses for 
which they were not properly 
called to account. 

Mr Dankert could not and 
would not deny yesterday That 
abuses had been committed. 
But the extent to which mem- 
bers have been “ borrowing " 
from the parliament is largely 
a measure of the woefully in- 
adequate accounting procedures 
and administration which the 
court oE auditors have un- 
covered. 

No evidence has apparently 
been unearthed of individual 
wrongdoing worthy of legal or 
political censure. ■ • 

The parliament's leadership 

has accepted all of the auditors’ 


main strictures and recommen- 
dations and is Instituting speedy 
reforms. Ernst and Whinney 
have been called into improve 
accounting procedures while the 
Belgian accountants, Moret and 
Limperg are investigating 
14 irregularities ” which have not 
so far been satisfactorily ex- 
plained. 

Obviously, Mr Dankert would 
not yesterday rule out an even- 
tual police Investigation. The 
core of the auditors' complaint 
is that the parliament's financial 
regulations have been consist- 
ently breached in the adminis- 
tration of the members’ cadi 
office. - 

This office was responsible for 
running a system of ** imprest” 


BY JOHN WYJJE5 IN STRASBOURG 

accounts, for the payment of i 
“ urgent allowances." These i 
wbuld include members' £58 a. ; 
day attendance allowances at i 
plenary sessions and committee i 
meetings, their- travel allow- 1 
ances and secretarial and office ; 
allowances- ; 

The auditors said that there i 
was nothing urgent about this - < 
latter category and that It did '• 
not belong in the imprest 
accounts system. Having drawn - 1 
their allowances, members could 1 
go for months without being ■ 
called to Justify their expend!- - ‘ 1 
tures so that several did, indeed. I 
.run up debts to the parliament ' 
which were only belatedly pajjf . 
off. 

But this was not the real ] 


focus of the auditors’ report, 
which uncovered - a chaotic 
administration system in the 
cash office and a widespread 
incidence of mismatching 
balances between the --office's 
accounts and individual bank 
accounts and between currency 
accounts (the office ..used 22 
currencies) and the" general 
account 

Subsequent investigation has 
brought about reconciliations 
between these various -balances 
except for around -£52,000 
which was moved from the 
Midland Bank in London to- 
Luxembourg ihi> spring. 
Although there was ap attempt 
to record the transfer as taking 
place last September and 


November, this money.has not 
yet been traced. 

Looking at the Midland Bank 
account alone, the report found 
53 payments recorded in the 
■cash office's accounts which had 
not been executed by the bank 
— anne of these payments were 
recorded without any support- 
ing documents. 

' Another 45- payments had 
been executed by the bank, but 
were not In the cash office's 
books and 20 payments' entered 
into the accounts in Irish -punts 
had been executed by the bank' 
in more. valuable sterling. 

But these, were all fof small' 
amounts and could easily have . 
been overlooked by the 15 Irish 
members, who have * been 


■absolved by Mr Dankert of any 
wrongdoing and have paid back - 
their small “windfall " gain j 
The reforms to be introduced 
shortly are aimed at (leaning, up 
administrative procedures and 
removing the possibilities - of 
abase. The payment system is 
to be -computerised in October 
■ and transfers made to members’ 
bank accounts rather than -by 
cas b . or cheque. • If allowances . 
' are not fully accounted for by 
members, then deductions will 
be; made from the following 
■month’s payments: 

; In- addition, travel and sub- 
sidence allowances will be. paid 
,-_af.the. end of each month so that 
members’ ateodance records 
can be checked. 


should be found. No names 
have been advanced as possible 
replacement and, until now, it 
had been thought more suit- 
able to defer any changes until 
tiie constitution is reviewed and 
local- elections held at the end 
of the year. 

In their letter, published in 
the jight- wing daily newspaper 
44 O Dia,” the two former 
ministers praise Sr Balseman’s 
courage in taking over the 
party leadership and premier- 
ship at a very difficult time after 
the untimely death of Sr sa 
Carneiro in December 1BS0. 
However, they ask him to 
“ think of the nation and recog- 
nise that he must be replaced.” 

Portugal’s economic, political 
and party situation gives rise to 
the deepest concern, the letter 
says -warning that the ruling 
coalition of Social Democrats, 
Christian Democrats anus Mon- 
archists shows. signs of internal 
rifts and mistrust. 

The former ministers claim 
the economic and financial situ- 
ation has deteriorated to the 
point where Portugal's develop- 
ment and the prospect of im- 
proved living conditions could 
he compromised for years. 

The Government must regain 
the . confidence of the 
Portuguese, they say, especially 
those who voted for the coali- 
tion, and show a firm image. 


Danish trawler 
‘kidnaps’ official 

KIEL — A Danish trawler 
crew “kidnapped”' a Went 
German fisheries official in 
the Baltic yesterday, accord- 
ing to Schleswig-Holstein’s 
Agriculture Minister, Herr 
Guenther Flessner. 

’ Two trawlers from 
Bagenkop, Denmark, were 
stopped- by a patrol boat for 
using Illegal dragnets and 
fishing within West 
Germany's three-mile limit 
.They, set off for home at top 
. speed alter the patrol boat 
captain boarded one of them 
bat were detained after a 
chase* muter . 

FINANCIAL times: published dally 

Sundays ' and holidays. U.S. 

subscription. 'ransS3E5.QO par annum. 

Second Claai- DOSM^a- pflid at Nsw 
York. N.Y., Md K Additional milling 
centra*. 


V 


financial Times Friday July 9 1982 


a- 


OVERSEAS NEWS 


a 

j'.*i 

i. . • ! 


('H 





Bob Hawke . . . grooming 
himself for the job for years 

Hawke bids 
to lead 
Australian 
Labor Party 

By Colin Chapman in Sydney 
THE AUSTRALIAN Opposition 
Leader Mr Bill Hayden, clearly- 
angered by constant sniping and 
a challenge to his leadership 
from fellow- front bencher and 
former union leader Mr Bob 
Hawke, last night summoned all 
Labour MPs to a meeting in 
Canberra next week to decide 
which of the two men will lead 
Labor at the next election, 
“This kind of destructive 
behaviour has. got to stop,” Mr 
Hayden told the Australian 
Labour Party at its annnai 
conference. 

Earlier Mr Hawke had 
declared that if Labor was to 
win the next election, he would 
have to-be the leader. He was 
commenting on a newspaper 
poll* showing that Mr Hayden 
had fallen behind Prime 
Minister, Mr Malcolm Fiaser, 
in national popularity. 

The irony is that Mr Hayden’s 
tactics are exactly the same as 
those deployed by Mr Fraser 
when faced by a politically 
divisive challenge from Mr 
Andrew Peacock earlier this 
year. 

Mr Fraser called a sudden 
meeting of Liberal MPs, and 
secured the numbers, little has 
been heard of Mr Peacock since 
while Mr Fraser, despite . a 
worsening of national economic 
problems, has regained both 
confidence and support. 

Next week's vote in the 
Parliamentary Labor Party wiH 
be touch and go fbr Mr Hayden, 
a former Federal Treasurer and 
a one-time policeman. It is 
thought he will just scrape 
home with the support of 
cliques in the New South Wales 
party headed by the state 
premier and ALP president. Mr 
Neville Wran, and Mr Paul 
Keating, the Opposition 
resources spokesman and a key 
party organiser. But one week 
of vigorous campaigning by Mr 
Hawke, a former Rhodes 
scholar, could make for a very 
close fight. 

Mr Hawke, who turns 53 in 
December, has never concealed 
his ambition to lead his party 
into government. With every 
possibility of Mr Fraser calling 
a general election a year early 
■in October, he feels he must 
make his pitch now. 

He has begun grooming him- 
self for the job for years. He 
no longer looks Eke the 
archetypal trade union leader— 
The role he played as President 
of the Australian Council of 
Trade Unions for a decade 
before entering Parliament in 
1980. 


Israelis 
prepare 
camp for 
prisoners 

Sy tend Lennon in Ansar, 
Lebanon 

A SPECIAL detention camp for 
Palestinian prisoners is rapidly 
being prepared here by the 
Israeli occupation forces, winch 
claim to have captured and 
arrested up to 9,000 PLO men 
In the past month. 

High embankments of fresh 
earth surround the camp, which 
is ringed by portable metal 
watchtowers, a series of barbed 
wire fences and closely spaced 
electric fight poles. 

A truck carrying two dozen 
blindfolded prisoners arrived at 
-the camp yesterday morning as 
I visited The site. 

Israel refuses to treat the 
PLO guerrillas as prisoners of 
war and promulgated a special 
military regulation which 
enables them to hold the 
guerrillas under a classification 
of administrative detainees. 

Tbe advantage of this regula- 
tion for Israel is that those held 
under it never have to be 
brought to trial and can be 
detained indefinitely. 

Having taken so many pri- 
soners whom it wall not treat , as 
prisoners of war, Israel decided 
to build a r special detention 
camp at a point halfway between 
Tyre end Sidon, some 10 km 
inlan d- 

In nearby Sidon, an Israeli 
army spokesman said that more 
Palestinian guerrillas were 
being detained every day. “ We 
know there are more PLO men 
in the region and we wxll try 
to get every one of them,” 

The spokesman claimed That 
Israel had detained 9,000 people 
in southern Lebanon, and that 
many hundreds had subse- 
quently been released. 

But the war against Che PLO 
behind the Israeli front lines 
has not ended. The Israeli 
forces are daily discovering 
arms caches inside Lebanon and 
still expect to capture more 
guerrillas 


Anthony McDermott assesses Amman’ s anxiety over increasing instability in the Middle East 

Impotent Jordan mourns Lebanon’s h umili ation 


THE SENSE of shock and 
humiliation at Israel’s in- 
vasion of Lebanon has probably 
been felt more acutely in Jor- 
dan than in any other part of 
the Arab world. 

Jordan has both’ the longest 
front line with Israel and the 
largest Palestinian population, 
outside the occupied West Bank 
and Gaza Strip. Because it has 
also been traditionally exposed 
to the political -winds of change 
in the region, the mood of Im- 
potence and vulnerability is 
more immediately obvious. 

On The personal level, there 
are few residents in Jordan who 
do not have some links with 
people in Lebanon. This 
applies particularly to those 
Palestinians here -who still live 
in refugee camps. 

In a period of ten days, the 
Red Cross has bad to deal with 
at least 8,000 inquiries about 
the fate of relatives living in 
Lebanon. This has contributed 
to what is almost a sense of 
nrourning, made more bitter by 
the impotence resulting from 
Jordan’s previous military 
encounters with Israel. 

Jordan lost East Jerusalem 
and the West Bank in The 1967 
war, did not participate in the 


fighting of 1973, .overall, but, 
has learned enough to realise 
that opening up a front with 
Israel would be suicidal. 

Instead, Jordan bad had -to 
content itself with gestures. The 
Palestine Liberation Organisa- 
tion was - allowed to advertise 
for vohzteers . to fight in 
Lebanon. A contingent of the 
Palestine Liberation Army 
based in Jordan actually took 
part in the fighting. Those who 
were wounded and returned to 
Amman were visited in hospi- 
tal by King Hussein, thus per- 
haps helping to head off some 
criticism that Jordan was 
making no contribution to the 
war. 

Criticism has instead focused 
on the other Arabs — parti- 
cularly those with dose U.S. 
relations — and the Soviet 
Union. The leading Jordanian 
newspaper, AJ-Rai. published a 
pointed cartoon recently which 
shewed an obese Arab from the 
Gulf lying back in a deckchair 
with a bottle of Cognac beside 
him. 

He was reading a newspaper 
called “Arabism” which had 
front page stores about “the 
Greek Arab Republic” ba nnin g 



King Hussein .. .bitter at U.S. 
attitudes towards invasion 

Israeli ships from its ports and 
“ the Swiss Arab Republic " 
calling for a break in diplomatic 
relations with Israel. 

But press criticism in car- 
toons and editorials has scarcely 
been matched by any form of 
diplomatic action. King Hussein 
is known to be extremely bitter 
.at U.S. attitudes towards the 
invasion of Lebanon and has 
several times seen the resident 


U.S. Ambassador who has kept 
the King informed about the 
progress of talks aimed at re- 
solving the crisis. 

Jordan has been hardly less 
frustrated at EEC attempts to 
equate an Israel withdrawal 
from Lebanon with similar 
action by the Palestine Liber* 
tion Organisation. 

King Hussein's visit to the 
Soviet Union last week did little 
to deflect accusations that Mos- 
cow’s support for its friends m 
the region was both too little 
and too late. Tbe Moscow visit, 
planned some time ago as a 
largely private initiative, 
resulted in rather too much 
time being spent on the Black 
Sea. 

The- King met some senior 
Government Ministers but ait 
short his trip when it became 
clear that there was not to be 
a session with the ailing Presi- 
dent Leonid Brezhnev. He 
returned to Amman frustrated 
by his lack of diplomatic 
achievement and also dis- 
appointed that the tracked Sam- 
8 missiles which he had been 
promised by the Soviet Union 
were much less modern than 
those already delivered to Syria. 


'All this has served to fuel 
Jordan’s fears of greater in- 
stability in the region should 
the Palestinian guerrillas oe 
ejected from Lebanon. If the 
PLO was forced underground, 
some Jordanians suspect that 
it anight revert to terrorism 
against not just Western tar- 
gets taut also moderate Arab 
states. 

For Jordan this might have 
greater impact if part of the 
PLO were to set up in Syria. 
Relations between Jordan and 
Syria have deteriorated sharply 
over the past three years (they 
are on opposite sides in the Gulf 
war between Iraq and Iran) and 
there is anxiety In Amman that 
the Palestinian guerrillas could 
be used not just for cross-border 
attacks on Israel but also against 
the Jordanian regime. 

In turn, this might provide 
Israel with the pretext for turn- 
ing on King Hussein and no-one 
is unaware in Amman that Mr 
Men ahem Begin, Israel’s Prime 
Minister, has many times stated 
that a Palestinian state already 
exists in the Middle East — 
called Jordan. 

The Israeli invasion of Leba- 
non has, however, only partially 


eclipsed Jordan's anxiety over 
the fate of Iraq. King Hussein 
Sms given unstinted support to 
President Saddam Hussein’s war 
effort and the Iraqi defeats and 
subsequent withdrawals put at 
some risk the economic boom in 
Jordan promoted by Iraqi 
supply contracts. 

More seriously still, tbe pos- 
sible overthrow of President 
Saddam Hussein by Shia ex- 
tremists could have an impact 
on Jordan’s own religious funda- 
mentalists. Although the Mos- 
lem Brothers are closely con- 
trolled in Jordan, they are 
thought to have a considerable 
informal following. 

A Jordanian with detailed 
knowledge of the region 
summed up: “In the long run, 
Islamic fundamentalism will 
feed on the disasters in Lebanon 
and Iraq. Its supporters will 
ask what the so-called hardline 
Arab states have achieved, apart 
from mouthing slogans. They 
will argue that an Islamic ji/inrf 
(holy war) is the only way for- 
ward. They will find many 
listeners and although the 
effects may not immediately 
appear, the arguments will brew 
and then they will be felt" 


5 

> T 

1 ■ 
t ; 

i . 
i 

> 
i 

i 


I • 

i 

i 1 


Beirut’s crippled hospitals are casualties of the Israeli’s siege 


BY JAMES BUCHAN tN BEIRUT 


DOCTOR KHALED,- a neuro- 
surgeon bom in Jaffa. Israel, 
bat trained in East Germany, 
perforated a craniotomy an 
Tuesday on the first floor of 
Beirut’s Gaza Hospital, slept in 
his green theatre overalls that 
night and was still wearing them 
the next day. 

Dr Khaled, who is 34, wadies 
Ins overalls by hand himself, 
but the water comes from a well 
under the hospital and may well 
be contaminated. He does have 
sterile disposable gloves, but 
they are too valuable to be 
thrown away and cannot be 
properly sterilised unless there 


is a secure source of unvarying 
power for a specific length of 
time. It often seems that the 
Israelis, who have been tinker- 
ing; with power and water since 
last Saturday, will not permit 
this. 

The intensive care room, 
where nurses are beginning to 
draw fluid from the unknown 
patient’s brain, is full of sand- 
bag for fear of Israeli Shelling 
from the hills to the east. The 
door has no glass, but Dr 
Khaled blocks my way. “This 
is the green, or rather the 
sterile, line,” he says. 

The patient has acute bleed- 


ing within the brain and has 
about a one in 10 chance of sur- 
viving with total paralysis of 
his right side. 

The Gaza Hospital, which is 
run by the Palestinian Red 
Crescent Society, began operat- 
ing in the southern suburb of 
Sahra with II floors and 100 
beds in 1975. 

Dr Khaled now has seven 
surgeons and 12 beds. He also 
has a kitchen, with winch he 
feeds the surrounding streets 
where a handful of the poorest 
people in Beirut have remained. 

The kitchen is also shared 
with Ramallah, now doing about 


one delivery a day although on 
June 4. the day the attack on 
Beirut began, three women gave 
premature birth in the base- 
ment, tbe lift and the lavatory. 

Dr Khaled divides his prob- 
lems into two sorts. First are 
those of warfare, comprising 
the danger to the building and 
the injuries caused by new 
Israeli weapons which have 
altered the “ traditional ” 
balance between death and 
injury from about 2:8 to 5:5. He 
particularly refers to the 
immense and extensive damage 
to several different organs, 
caused by cluster bombs. 


The second problem concerns 
the lack of secure electricity and 
water although the Israelis 
have apparently turned on 
mains power. The Gaza gene- 
rator cannot be relied on for, 
say. the maintenance of a blood 
bank at the required tempera- 
ture of 4 degrees centigrade. 
His approach has therefore 
been to take the addresses of 
blood donors, and send out 
ambulances with loudEailers 
during bombardments to trans- 
fuse patients in the streets or 
in basements. 

Tbe lift also cannot be retied 


on. Often severely injured 
people are carried bodily down 
or up stairs. 

Hospital staff make no distinc- 
tion between soldiers and civil- 
ians, and Dr Khaled said that 
Gaza treated an Israeli pilot now 
being held by the Pales tinians 
as a prisoner of war. 

When the mental hospital was 
hit. 800 patients varying in con- 
dition from senile dementia to 
violent schizophrenia were re- 
leased onto the streets of Beirut. 
Dr Khaled says. West Beirut 
has long been a barbaric place, 
but the Israeli siege is sending 
it back into the middle ages. 


Drought threat follows 
Indian monsoon delay 


BY K. K. SHARMA IN BOMBAY 

LARGE PARTS of India face a 
severe drought because of a 
two-week delay in the onset of 
annual monsoon rains. Meteoro- 
logists are pessimistic about the 
prospects for a change in. the 
weather soon. 

If the rains are delayed even 
until the end of the week, 
sowing of summer rice and 
other grain crops win be 
affected and lead to losses In 
production. 

India has had two successive 
good monsoon years — on which 
the agricultural economy 
depends because of the lade of 
adequate irrigation facilities — 
in 1980 and 1981. Three good 
rain years are unusual. Tbe 
areas so far affected by drought 
so' far are the entire northern 
belt, and eastern India where 
part of the crop is- withering 
because of the intense heat and 
lack of moisture. 

The summer grain crop hoped 
for is nearly 80m tonnes and 
the drought could erode this 
easily unless the weather 
changes in the next few days. 
The drought comes after 


unseasonal rain and hail last 
winter destroyed at least 2m 
tonnes of wheat 

The Government’s grain stock 
position at present is said to be 
good, largely because official 
procurement agencies lowered 
standards and bought dis- 
coloured and slightly damaged 
wheat from farmers which 
would not normally have been 
purchased. 

' As a result, present grain 
stocks are around 15m tonnes, 
■which, is slightly more than the 
12m tonnes considered the 
ntininwm safe level for buffer 
stock purposes. However, the 
drought could mean that the 
Government will have to dip 
into the stocks to keep the 
public distribution system of 
ration shops going. 

The Agriculture Ministry says 
that at present there are no 
Ians to make grain imports this 
year but this assessment will 
obviously have to be revised if 
there is a major monsoon 
failure. India imported about 
2.5m tonnes of wheat from the 
U.S. and Australia last year, the 
first food imports in five years. 


Angola spells out conditions for 
withdrawal of Cuban forces 


BY MICHASL HOLMAN IN LUANDA 


THE ANGOLAN Foreign Mini- 
ster. Mr Paulo Jorge, last night 
set out the terms on ■ which 
Cuban forces would be with- 
drawn from his country — the 
issue which is regarded by the 
U.S. and South Africa as hte 
key to the success of the current 
Namibia settlement negotia- 
tions. 

Mr Jorge stressed that the 
presence of the Cubans in 
Angola (estimated at between. 
15.000 and 20.000) was “a 
bilateral question between 
Angola and Cuba." He rejected 
any attempt to make Cuban 
withdrawal a precondition for a 
Namibian scttlemenL 

Mr Jorge reaffirmed the im- 
portance of a paragraph on tbe 
subject contained in a joint 
defloration drawn up on 
February 4 after talks in 
Luanda with the Cuban Foreign 
Minister. 

The paragraph has been 
interpreted by Western and 
African diplomats here as the 
firmest possible signal to hte 
U.S. and South Africa that once 
Namibia wins independence 
undrr the United Nations settle- 
ment plan, the Cubans will 
leave. 

Mr Jorge translated the rele- 
vant section as follows: “As 
and when the Angolan and 
Cuban governments raa y so 
intend, the withdrawal of Cuban 
forces stationed in Angola would 
be carried out by sovereign 
decision of The Government of 
Angola once each and every 
eventuality of acis of aggression 
or armed invasion cease to 
exist. 

“The Government of Cuba 
therefor reiterated that if 
implement without hesi ration 
any decision adopted by 


sovereign Government of An- 
gola on the withdrawal of these 
same forces.” 

Mr Jorge was asked .whether 
the post-settlement presence of 
Unita insurgents loyai to Mr 
Jonas Savimbi, end operating 
in southern and central Angola 
with South African support, 
would constitute “aggression” 
and thus provide grounds for a 
continued Cuban presence. 

“ I would like to point out 
very dearly that the presence 
of the Cuban forces in Angola 
was never related to this insur- 
gent group, as you call them,” 
he said. “ The Angola Govern- 
ment is convinced that when the 
Namibian people achieve real 
independence, this insurgent 
group wiH gradually disappear. 

“We are convinced that the 
South West Africa People’s 
Organisation. (Swapo) wiH win 
free and fair elections, and this 
insurgent group will have no 
place on Namibian territory. 
Unita has no popular support 
inside Angola.” 

Mr Jorge aid his government 
did not accept any precondi- 
tions for a Namibia settlement, 
currently being negotiated in 
New York between the five- 
nation western contract group, 
Swapo, and the black front line 
states in southern Africa, and 
in parallel talks with the South 
African government in 
Washington. Mr P. W. Botha, 
the South African Prime 
Minister, has said that his 
government cannot accept 
implementation of a Namibian 
settlement “unless tbe Cubans 
leave" Angola. 

“ It is a sovereign decision of 
the Angola Government.” Mr 
Jorge said, “and no-one can 
during these talks present this 
question of linkage as a pre- 
condition to work on the solu- 
tion of the Namibian problem. 


We do not accept preconditions 
of any kind. 

“There is also a question of 
the credibility of our word. 
What we have said in this 
declaration of February 4 means 
that when there is no possibility 
of aggression or invasion, the 
Angolan Government will take 
necessary steps, and this is 
clearly stated in the 
declaration.” 

The presence of Cuban forces 
In Angola goes back to the 
South African invasion of 
Angola a few weeks before 
independence in 1975, he said. 
“How is it possible to put on 
the same balance or scale the 
aggressor and tbe victim? Our 
armed forces have never 
crossed the border of a neigh- 
bouring country. 

“The problem is that there 
is some kind of obsession from 
the U.S. on the question of 
Cubans. The conflict existing 
between he U.S. and Cuba is 
no concern of our.” 

The contact group as such, 
said Mr Jorge, “has never 
raised the question of linkage. 
Inside the group only the U.S. 
is raising the matter. The four 
other members do not consider 
any linkage between the Cuban 
presence and the solution of 
Namibia.” 

The so-called linkage Issue 
was implkdty raised in a docu- 
ment circulated last month to 
participants in the Namibia 
dispute. 

The contact group document 
referred to an opportunity 
within the context of Namibia 
talks to “resolve other long- 
standing problems of the region 
at present hindering the devel- 
opment of the climate of 
security and mutual confidence 
necesary for a Namibia settle- 
ment." 



- » t 




4 


Financial Times Friday July/ 9-1982 


AMERICAN NEWS 


David Lascefles witnesses the death agonies of a mid-American mining town 

‘[Richest hill— now a hole in the ground 


" THE RICHEST hill on earth” 
as Butte once gloried in calling 
itself has a hollow ring these 
days. Though memories of the 
hellroarra' gold rush of the late 
1800s lure thousands of tourists 
to this hardy town high in the 
Montana Rockies, the past is 
proving a heavy burden for the 
locals. 

The immense copper deposit 
that made Butte famous and its 
inhabitants wealthy — some 

fabulously so— is today a vast 
and lifeless hole in the ground 
which collects water. Its upper 
terraces loom like a giant 
empty amphitheatre over the 
old neighbourhoods where 
streets have names like Iron, 
Platinum and Mercury and 
where Sarah Bernhardt once 
performed. The miners’ unions, 
formerly so prosperous that it 
built itself a huge hall in the 
middle of town, today has a 
mere 61 members, and the hall 
has ’ degenerated into a seedy 
meeting place for the unem- 
ployed. 

The town itself is also show- 
ing signs of age, despite the 
spectacular setting right beside 
the Continental Diride. The old 
brick buildings look worn. The 
once magnificent marble hall of 
the Metals Bank an Main Street 
is now a dispensary for food 
stamps. Modern-day Butte has 
migrated to the bottom of the 
hili, as if deserting its former 
livelihood, and is trying to 


reconstitute itself round fledg- 
ling industries: medicine, distri- 
bution and energy. 

The cause of this decline is 
obvious: the . gradual working 
out of the deposit, along with 
tiie slump in the price of copper, 
has forced the Anaconda 
Minerals ' Company (which 
started here in the 1870s) to run 
down its operations and lay 
workers off. Today it employs 
fewer than 800 people compared 
with many thousands in its hey- 
day. The company, winch has 
been a part of Atlantic Richfield 
since 1977, lost $65m (£3 7.8m) 
in Butte last year and expects 
to lose another $26m this year. 

Two years ago the company 
stunned Montana by deciding to 
close a copper smelter and 
refinery in two neighbouring 
communities in Anaconda and 
Great Falls and take the dras- 
tic step of shipping the ore 
across the Pacific for processing 
in Japan instead. It cited the 
exorbitant cost of converting 
the ageing plants to meet 
modern-day environmental 
s tandar ds. To cushion the shock 
it paid out several million 
dollars to the affected communi- 
ties and the hud-off workers. 

There is stm work in Bute, 
however little. But with more 
than 10 per cent of the local 
labour force unemployed (com- 
pared with a national average 
of 9.5 per cent} the copper 



After the gold rush: Butte’s museum preserves the hellroarin' 
spirit of the 1800s 


workers harbour much bitter- 
ness not just towards Anaconda, 
but the Reagan Administration 
and the Japanese who have won 
a lot of their jobs. 

The laid-off miners (another 
270 joined their ranks a few 
weeks ago) feel squeezed 
between a job-destroying reces- 
sion and cuts in federal aid to 
the disadvantaged. Although 
jobless miners collect $145 a 
week on the dole (what they 
earned in a day at the mine) 
their prospects for re-employ- 
ment are dim, at least in the 
near future. 

Other local industries like 


forestry axe having a hard 
time, the world's largest silver 
and lead mines up the road in 
Idaho have just shut down, and 
government funding for re- 
training has been cut back. 
Butte miners seeking jobs in 
other states also find them- 
selves tarred with the brush of 
union militancy for which Mon- 
tana is famous. 

“ We’d have done better to 
be laid off five years ago,” com- 
plained one of them. Ironically, 
the junior workers who were 
laid off in the 1970s found it 
easier to get new jobs. 

Unable to preserve work, the 


unions have been reduced to 
fighting a rearguard action with 
Anaconda over lay-off benefits. 
Anaconda still maintains that 
the recent lay-offs were only 
temporary so the miners are 
not entitled to severance pay. 
But the company has flooded its 
largest underground mine, an 
action which has a . look of 
finality about it Anaconda says 
it would discuss benefits if the 
unions would be more “flexible” 
on demarcation. The result is 
deadlock. 

But Butte is adjusting. Ana- 
conda now employs fewer 
people than the local public 
services and the buckling medi- 
cal care industry. Inhabitants 
not directly associated with 
mining take the sanguine view 
that Butte is suffering the pain- 
ful but necessary death agon- 
ies of a one-company town. Its 
rich history should be capital- 
ised on for tourism, not dung 
to grimly. 

Eveii as the miners shudder 
with - shock of change, some- 
thing new is growing in their 
midst. A government-funded 
energy project was located in 
Butte- to resear ch magneto- 
hydrodynamics (MED) — a way 
of generating cheap .electricity 
by passing coal gases through 
a magnet. An important coaJ- 
p reducing state. Montana could 
find Itself at the forefront of 
the new technology. 


Chile loans mark change 
in borrowing pattern 


BY MARY HELEN SPOONS* IN SANTIAGO 


C HILE 'S recent agreement with 
the International Monetary 
Fund to borrow roughly Slbn 
f£550m) along with its efforts 
to raise additional loans from 
international lending institu- 
tions marks a change in its 
previous foreign borrowing 
pattern, in which the Govern- 
ment sought to reduce its share 
of the country's external defat 

At the end of last year Chile's 
foreign debt stood at $ 12.7b n, 
with more than half of this con- 
sisting of private sector borrow- 
ing. 

A few months ago, the Chilean 
central bank announced Chile 
would repay its outstanding 
obligations to the IMF before 
the end of tins year, and that 
the Chilean peso's relative 
stability had prompted the IMF 
to include it in its basket of 17 
international currencies. 


Last month, however, the 
Chilean peso was devalued from 
39 to 46 to the dollar, interrupt- 
ing three years' fixed exchange 
rate. 

Shortly after the announced 
devaluation, Chile’s Finance and 
Economy Minister, budget 
director, and Central Bank 
president travelled to Washing- 
ton to meet officials of the IMF, 
the World Bank and the Inter- 
American Development Bank, to 
explain the reasons behind the 
devaluation and to seek new 
credit 

Sr Sergio de la Cuadra, the 
Finance Minister, said only 
9400m of the $lbn IMF credit 
would be expended, and that in 
no case would funds from these 
new public loans go to either the 
private sector or state enter- 
prises seeking external financing. 


U.S. will not 
sign Law of 
Sea treaty 

By Our US. Editor in Washington 

PRESIDENT Ronald Reagan 
has finally decided that the U.S. 
will not sign the International 
Law of the Sea Treaty, adopted 
by 130 countries earlier this 
year, the White House sadd yes- 
terday. 

The decision, which has been 
communicated to Washington’s 
main Western allies, was not 
unexpected, as the U.S. was one 
of only four countries to vote 
against the treaty at the end of 
April 

It will nevertheless upset 
'Hurd World countries, which 
see the treaty as a major instru- 
ment for distributing the 
world's economic resources in a 
way that gives pooer nations a 
fair share. 


Concern over military 
build-up in Nicaragua 


BY OUR MANAGUA CORRESPONDENT 


A MEETING in El Salvador of 
the four Foreign Ministers 
from Costa Rica, El Salvador, 
Guatemala and Honduras has 
concluded with a statement 
expressing concern over a 
military build-up in Nicaragua 
and urging it <r not to meddle 
in the affairs of its neighbours.” 

The meeting, to wtoich the 
Foreign Ministers of Nicaragua 
and Panama were not invited, 
was criticised in Managua as 
being part of a plan to revive 
a joint military force in the 
region to act in concert to sup- 
press the growing liberation 
movements in the Isthmus, and 
possibly to be used against 
Nicaragua itself. 

The Foreign Ministers’ state- 
ment comes on the heels of 
what appears to be a mlcor 
escalation of fighting in lb 


region after 2,000 Honduran 
troops were reported to have 
crossed the El Salvador border 

This joint operation with the 
El Salvadoran army was 
directed against FMLN guer- 
rillas, 

A Defence Ministry official in 
Managua yesterday announced 
the loss of 11 Nicaraguan 
soldiers in its northeast border 
region with Honduras in fight- 
ing which has been going on 
since Sunday and is apparently 
still in progress. 

A large unit of "counter- 
revolutionaries” who camped 
across the border in Honduras 
are apparently attempting to 
divert attention from celebra- 
tions due to be held to mark the 
overthow of President Anas- 
tasia Somoza 


Reagan may 
call 60 -day 
‘cooling-off 
in rail row 

By Reginald Dal*, US'. Editor* ■ 

In Washington 

PRESIDENT Ronald Reagan 
Is likely to order a 60-day 
cooling-off period to avert the 
Hinpjt of a crippling nation- 
wide U.S. rail strike, adminis- 
tration officials indicated yes- 
terday. 

Both labour manage- 
ment have said they would 
welcome a Presidential move 
to head off the strike, set for 
Sunday, although it would go 
against -the Reagan ad mini s- 
(ration's policy of non-inter- 
vention in private labour dis» 

■ pates. 

In addition to the eoollng- 
off period, Mr Reagan has the 
power to set up an emergency 
board to make recommenda- 
tions for a settlement in the 
dispute between the private, 
mainly freight-carrying rail- 
road companies, and 35JJ00 
drivers, firemen and train 
crews; 

The union Involved, the 
Brotherhood, of Locomotive 
Engineers, has been offered 
the same basic terms, a 25- 
30 per cent wage increase over-. 
39 months, for which 11 other 
rail unions have already 
settled. 

But there is a dispute over 
whether cost-of-living in- 
creases should apply to the 
special paymetns that drivers 
receive after the first 100 
miles, or eight hours in the 
cab, and other manning pro- 
posals. 

New accounting 
system delayed 
at least a year 

By Anatofe Kaletsky 

in Philadelphia 

THE NEW system of bank 
reserve accounting agreed in 
principle last week by the 
U.S. Federal Reserve Board 
will not he introduced for at 
least a year and possibly 
longer, Mr Paul Volcker, the 
Fed chairman, has decided. 
Because of complications 2n 
introducing it, the system 
will not start “before next 
July.” he added. 

When the new “contem- 
poraneous Reserve Account- 
ing” system was approved 
last week. Fed officials indi- 
cated that it was unlikely to 
come into effect until May, 
1983. 


Argentina gears up 
for Falklands 
diplomatic offensive 

BY JIMMY BURNS toTBUEMOS AIRES 


ARGENTINA is gearing up fur 
a major diplomatic offensive 
aimed at recovering int«> 
national support for its c t a wns 
over the Falklands. 

In public, the new Govern- 
ment of Gen Reynaldo Bignone 
has ruled out, implicitly rather 
than explicitly, a new ndlitaiy 
adventure. However, it remains 
under intense political pressure, 
particularly from sectors within 
the armed forces, to keep up 
the momentum. 

Given the current divided 
state of the armed forces, there 
is concern in diplomatic circles 
that a “populist” military 
officer might emerge demanding 
a more drastic solution. 

Argentine officials are gener- 
ally agreed on the pressing 
need to obviate the British 
diplomatic footdraggiiig which 
characterised negotiations prior 
to the April 2 invasion. 

Gen Bignone is on record as 
making Argentina’s sovereignty 
cfejm over the islands a 
■' priority of foreign policy.” His 
Government wants to show re- 
suits, if possible, well before 
the current period of military 
rule ends in 1984. 

Given Argentina’s continued 
scepticism of London’s willing- 
ness to negotiate, the main 
diplomatic thrust in the coming 
weeks will be on two main 
fronts: 

• To involve the UJ5L- , The exit 
of Mir Alexander Haig as U.S. 
Secretary of State and President 
G&ltieri of Argentina have led 
to a tentative attempt at bridge- 
rebuilding. 

TJ.S. diplomats fear that a 
“dialogue of the deaf” as be- 


tween Britain and Argentina 
could eventually provoke a 
bloody second round in thw 
Falklands. Buenos Awes, modft- 
while, is banking on Present 
Ronald Reagan's influence on a 
currently inflexible Mrs Mar- 
garet Thatcher. 

• Indications of the U.S.-Argen- 
tine rapprochement came early 
this week in a letter from Gen 
Bignone to Mr Reagan which 
expressed the hope that the 
lifting of U.S- sanctions could 
lead to tiie normalisation of re- 
lations. 

# At the UN: Buenos Aires still 
believes that this international 
forum is the one that most ade- 
quately frames her claims over 
the islands. 

The new Argentine Foreign 
Minister, Sr Juan Aguirre 
Lanari, plans to go to New York 
in September. Before then. 
Argentina will try to strengthen 
Its support 'among Third World 
countries. 

A top-level diplomatic mission 
led by Sr Raul Quijano, Argen- 
tina’s Ambassador to the Organi- 
sation of American States, left 
fhi* week for Mexico and 
Venezuela. 

Gen Bignone, meanwhile, has 
indicated that he might per- 
sonally attend the upcoming 
meeting of the Non-Aligned 
Movement in Baghdad. 

The release yesterday of the 
last British prisoner of war. Flt- 
Lt . Jeffrey. Glover, is the most 
practical, indication, since the 
release of the three British 
journalists accused of spying, 
that Argentina considers that 
there Is a de facto cessation of 
hostilities in the South Atlantic. 


Savings bank go-ahead 


BY OUR HEW YORK STAFF 

THE SLOW erosion of U.S. 
bank regulation continued this 
week with the approval by the 
Securities and Exchange 
Commission of a plan to allow 
savings banks to go into the 
stockbroking business. 

At the moment, banks are 
barred from many activities 
traditionally handled on Wall 
Street However, the banking 
industry is presang hard to 
expand its ground. 

The SEC decided to raise no 
abjection to a plan put forward 


by 28 Savings and Loan 
institutions to offer stock- 
broking services through more 
than 1,000 branches nationwide. 

However, the SEC did not 
address the issues raised by 
banking law which are the 
province of the hank regulators 
who could still block the plan. 
The Securities Industry 
Association, which represents 
Wall Street’s interest and is 
bitterly resisting all encroach- 
ment. said it was “disappointed” 
by the SEC’s action. 


WORLD TRADE NEWS 


Discord on conditions 
hits export 
credits Consensus 


Disarray in 
Japan 
over U.S. 
sanctions 


BY GILES MERRITT IN BRUSSELS 


By Richard C. Hanson in Tokyo 


AX OVERWHELMING majority 
of the EEC’s partners in the 
Si-nation OECD exports credit 
Consensus has refused to 
a -cept one cf the conditions 
the Community attached to 
renewal of the credits pact 
until May 1 next year. 

The point of disagreement is 
net expected to threaten the 
Consensus. It concerns condi- 
tions being sought by the EEC 
on behalf of Greece and Ireland 
lhat would have enabled them to 
receive credits on the same 
terms as some developing 
nations. 

In a meeting in Brussels be- 
tween representatives of the 
Consensus signatories, all the 
EEC's 12 partners in the pact 
except Portugal rejected the 
Community demand that Greece 
and Ireland be given special 
transitional status, so that they 
would be classified as developed 
Category 1 countries but 
accorded the lower rates that 
obtained under the previous 
Consensus accord until it 
expired last month. 

The strong view of the Con- 
sensus countries was that, to 
allow special status to the two 
poorest EEC member states 
would result in a stream of 
applications from other border- 


line countries covered by the 
exports credits agreements lhat 
might destabilise the OECD 
pact. 

The European Commission 
has, therefore, been directed to 
inform both governments that 
the modification, which was 
urged principally by Greece, is 
unacceptable. 

Although the Greek Govern- 
ment could imperil the credit 
pacts future by persisting in its 
demand. Brussels experts be- 
lieve that with an estimated 
advantage to the Greek economy 
of only 8600,000 (£333,333) a 
year involved, it is unlikely that 
Greece would wish to force a 
confrontation with EEC partners 
who are generally relieved that 
the pact has been renewed and 
a possible export credit “ war ” 
with the U.S. and Japan averted. 

The special terms for Greece 
and Ireland were only a. 
secondary element in the modi- 
fications to the Consensus that 
EEC member states have in- 
sisted on. 

Providing Greece 'and Ireland 
do not make the surprise move 
of contesting the OECD partners 
demands, the uncertainty that 
has marked attempts to renew 
the Consensus now appears to 
be at an ind. 


Portugal expects to 
double Mozambique trade 


BY DIANA SMITH IN LISBON 

PORTUGAL expects to double 
its trade with its former colony 
Mozambique this year com- 
pared with last year when it 
exported Esc 2bn (£13.7m) and 
imported Esc 750m. In the first 
quarter of 19S2, exports were 
Esc 750m and imports Esc 200m. 

The Bank of Portugal opened 
a credit line to Mozambique two 
years ago for purchase of goods 
and services. It was worth 
S125m. and has now been 
expanded with a special provi- 
sion of Esc Ibn to pay for the 
hire of Portuguese contract 
workers in Mozambique. 

While Portugal buys cotton, 
sisal, tea and wood from 
Mozambique, the majority of its 
sales there are manufactured 


goods. The recent visit of Sr 
Francisco Balsemao. the Portu- 
guese premier, to Mozambique 
should give another boost to 
trade, as he took a party of 
industrialists with him. 

• The Portuguese Parliament 
has authorised the government 
to enrol the country in the 
African Development Fund. 
Portugal’s initial annual contri- 
bution will be $16m with an- 
other $10m to be paid in subse- 
quent years. 

• Portugal and France are set- 
ting up a joint committee to 
foster co-operation in the 
domain of military industries. 
The ground work was laid dur- 
ing the three-day visit to Lisbon 
of M Charles Hernu, the French 
Defence Minister. 


DISARRAY IN the Japanese 
Government has surfaced 
over how to react to the U.S. 
decision on stepping up 
economic sanctions against 
the Soviet Union. 

The Foreign Ministry yes- 
terday denied that Japan had 
decided not to comply with 
the UjS. sanctions, which 
would ban the export of oil 
and gas equipment made in 
Japan under licence to U.S. 
companies or by subsidiaries 
of U.S. groups. 

The Japanese Government 
is not considering a joint 
response with the EEC over 
the sanctions, the Foreign 
Ministry said. TEe EEC has 
vigorously opposed U.S. 
policy. 

The Foreign Ministry con- 
siders that the Siberia-West 
Europe gas pipeline project, 
of interest to EEC companies. 
Is completely different from 
the Sakhalin gas project, off- 
shore Siberia, of interest to 
Japan and underway for 
several years. So far it has 
been * exempted from 
sanctions. 

Bat Mr Toshio Komoto, 
director general of the 
Economic Planning Agency, 
yesterday was quoted as say- 
ing that Japan should “keep 
in step” with the EEC over 
sanctions. 

The Ministry of Inter- 
national Trade and Industry 
objects to sanctions affecting 
U.S.-licensed production or 
manufacture in Japan by VJS. 
subsidiaries, but not neces- 
sarily the aim of the sanc- 
tions. There should be 
“closer linkage” in action 
between the U.S. and Japan, 
one official said. 

Officially the Japanese 
Government is still “ study- 
ing” how tiie UB. sanctions 
would apply In specific 
instances. 

On June 22, the Govern- 
ment. in letters to the U.S. 
Secretaries of State and 
Commerce, asked for the 
decision to include the 
Sakhalin oil and gas explora- 
tion project offshore Siberia 
in the sanctions to be 
reversed. 

The UJS. has refused to 
allow the export of sophisti- 
cated drilling and exploration 
equipment needed by the 
project But Japan has so far 
received no reply to its letter. 


St Michael and the crusade for overseas sales outlets 

BY PAUL CHHSBUGHT, WORLD TRADE H3ITOR 


FOR EIGHT weeks, potential 
buyers from more than 30 coun- 
tries have been visiting a 
specially designed showroom at 
the Marks and Spencer head- 
quarters in London. There, dis- 
played before them was the 
Marks autumn-winter range of 
clothing — a complete wardrobe 
from overcoat to ruffle neck 
blouse. 

The extensive range of mer- 
chandise Marks needs for its 
UK stores is all available for 
export “Our export customers 
have access to all of that,” says 
Mr Gordon Adam, the group’s Marks can manage by selling 
export executive. assortments from the range con- 

“We don’t use export as a ceived primarily for domestic 
means of disposing of problem sales. But it does not always 
lines — the ends of ranges. We work. Brassieres are made for 
aim to export bur best,” he sale in the Far East that are 
observes. But, he adds, “ It’s not put on sale in the UK for 
almost always the case that Japanese and Chinese buyers 
fast-selling items here are shirts need shorter arms and 
fast-selling items for all our it is necessary to change sock 
customers,” . sizes for Norway. 

In most overseas markets Marks, though, is rather like 



an export trading house. 
Because it has no manufactur- 
ing capacity of its own, it is 
the outlet for a large number 
of often relatively small fac- 
tories which make np the list 
of its own suppliers. 

Yet exports as a proportion 
of total turnover are not large. 
Total exports in the year to last 
March rose by a half over the 
previous year to • a total of 
£58m out of group sales every- 
. where of £2.2bn. Within that 
£5Sm, sales to the group’s own 
stores abroad accounted for 
£3 1.5m and exports out-of-house 
came to £26.5 m. 

The biggest markets are 
Hong Kong, where last year 
Marks opened a company to 
provide better Far Bast sales 
service, Japan, Israel the 
Channel ■ Islands,- Norway and- 
Panama, which is used as .a 
wholesaling point for the whole 
of South America. 

The opening of . the Hong 


Kong office provides the clue 
for future out-of-house export- 
ing strategy. The priority area, 
according to Mr Adam is the 
Far East, although there is also 
scope for additional sales in 
Scandinavia, Israel the Carib- 
bean and South America. 

There are three main selling 
techniques. The first is to grant 
the St Michael brand name 
franchise to freestanding sales 
outlets. 

The second is to establish 
shops within shops that sell the 
St Michael marque exclusively. 
This is often used in Finland 
and in Japan, where Marks 
goods, are sold within the Daiei . 
department store chain. 

The last is to sell directly to 
selected retailers or to market 
through a wholesaler, as is done 
in .the rase of underwear sales 
in Finland. 

Mr Adam says “our policy 
Is. not to export to. a country 
where we already have' stores — 


MARKS AND SPENCER EXPORTS 
Calendar 1981—% 


Ladies’ outerwear 

20 

Lingerie 

22 

Ladies* knitwear 

10 

Children’s wear 

10 

Menswear 

20 

Food 

10 

Rest — home furnishings, 
footwear, toiletries 

8 


100 


that's France, Ireland, Canada 
and Holland.” 

These, stores have been 
developed over the last decade. 
A sixth store opens in France 
during the autumn, at Lille, 
and next year Marks opens in 
Antwerp/ Belgium. 

■ “I would -think- that in the 
foreseeable future most of our 
energy will he spent developing 
the chain of stores- in France,” 
says-Mr Adam. - 


Malta textiles accord concluded 


BY GODFREY GRfMA IN VALETTA 


AN ACCORD covering textile 
exports by Malta to the EEC 
for the next two years has been 
concluded in Brussels, the 
Malta Government announced 
yesterday. 

The agreement, according to 
Dr Alex Sciberras Trigona, the 
Trade Minister, was more 
advantageous than previous 
accords. The list of textile 
products subject to quotas has 
been cut and quotas, in certain 
cases, substantially improved. 

The Minister urged Maltese 
industrialists to make the best 
of the new arrangements. 

The deal gives Malta an 
export quota of 2,130 tonnes of 


cotton yam to the EEC and. 
another 275 tonnes to Britain 
for the current year, an improve- 
ment of 57 tonnes over last 
year’s figure. 

Next year, the. EEC quota wiH 
rise to 2,180 tonnes and that to 
Britain to 325 tounee. 

Quota restrictions for the 
export of cotton fabrics by 
Malta to the EEC and Britain 
have been lifted, although, 
licensing controls will 1 remain 
in force. 

The EEC. has also lifted qitota 
restrictions covering the export 
of Malta-made tee shirts. Last 
year Malta shipped 2.2m tee 
shirts to the EEC and another 


435,000 to Britain. 

This year Malta will be able 
to ship 445,000 tee shirts to the 
UK with the figure next year 
growing to 455,000. 

• Malta’s 15-day International 
Trade Fair, which was to open 
July 10, has been postponed 
indefinitely according to a Fair 
Corporation Council statement 
The derision follows a threat 
by Mr Dom MintofFs Govern- 
ment to withhold exhibition per- 
mits unless exhibitors decided 
to advertise the event on the 
island’s state run television 

• Dom Minted (right): 
gove rnment jg pleased. 



U.S. urges fresh round of trade negotiations 


BY BRIJ KHIN DARIA IN GENEVA 


THE UJS. has called for a new 
round of trade negotiations 
going beyond the previous 
Tokyo Round to deal particu- 
larly with the problems between 
poor and rich countries. 

In a speech to the UN Econo- 
mic and Social Council (Ecosoc), 
Mr Jose Sorzano, U.S. chief dele- 
gate, said the UJ3. wants to 
explore “the possibility of a 
major round of trade negotia- 
tions between developed and 
developing countries aimed at 


further liberalising trade and 
improving market access.” 

The ministerial meeting next 
November of the General 
Agreement on Tariffs and Trade 
(Gatt) would be "an important 
opportunity to initiate positive 
steps towards fids vital end. 

Has remarks emphasised what 
the U.S. is seeking from the 
November conference; which 
should set guidelines for trade 
negotiations for. the rest of the 


decade.. 

The last such conference was 
held in 1972: and 'started the 
Tokyo Round. Ecosoc is- the 
UN body which monitors the 
work of some 50 UN agencies 
with a total annual budget of 
92bn <£Llbn). 

The round of trade negotia- 
tions would deal with the many 
issues still unresolved fay the 
previous Kennedy and Tokyo 
Rounds. Among the most 


important issues are regulation 
of the right of. industrialised 
countries to curb imports from 
the Third World to. protect 
. arang home industries. 

The U.S. wants more recogni- 
tion from developing nations 
that they should reduce export 
subsidies . and protectionist 
barriers against Western goods 
as their economies become* 
healthier and some industries 
more prosperous. 


Thai Airways 
signs £40.5m 
SAS contract 

By Our Stockholm Correspondent 

THAI AIRWAYS International 
of Bangkok has signed a 
DKr 600m (£40.5m) contract 
with. Scandinavian Airline 
System (SA$> and two Danish 
companies, Ramboll Hanne- 
mann. Raadglvende Ingeni- 

- orer and Christiani Nielsen. 
The , contract covers planning 

and construction of a plant at 

- - Bangkok International Airport 

f6r aircraft servicing. 

The project is to .b* completed 
within 36 months. 

According totbe agreement 
SAS will act as technical con- 
. sultan ts to. Thai and providing 
, know-how .’ 

'AKDJ adds: Morale Data, an in- 
dependent Norwegian com- 
puter coinpany;'hopes to win 
a large contract from China 
titis autumn, ; 'V 
Norsk Data is making a list of 
: ■potential partners for a pos- 
‘ .sible. venture to .market the 
company^' software In com- 
puter .typesetting 

Protect postponed 

Argentina, facing- economic 
problems after tie Falklands 
conflict with Britain, has in- 
. definitely postponed a $200m 
expansion project at its state- 
nur Sowisa steel mill. 
Japanese officials said yester- 
day, Reuter reports from 
Tokyo. 









Financial Times Friday July fl 1982 



- Many thanks to the competition (no names . 
mentioned)^ or their support and assistance over . 
the years in helping to sell our cars. 

Every time they advertise one of theirs, they 
die one of ours as the principal rival. 

But they won’t catch Ford making 
comparisons. So why do more people buy Ford? 

Because.atthe end of the day, money for 
nran^r, feature for feature^and car for car; they. . 
consider that nothing on four wheels compares’ 
with them. And that they are the finest value- 
fbr-mortey cars around today. 

And to make sure they stay that way, we 


specification to keep them just that one,- infuriating, 
jump ahead. Indeed recently, as you may recall, we 
even lowered lots of their prices just to make sure. 

From our baby Fiesta (which incidentally is . 
now available with a 11 economy engine giving 


55 miles per gallon*) to our luxurious Granada 2Si 
■ GfnaXjWhichisarguablythemost comprehensively^ 
equipped car to be priced at under £12, 000, f there 
- are many, many models. 

■ Over 90 at the last count. But the five wdve 
■selected here are a pretty convincing representation. 

There’s the fabulous new special edition . 
Crusader which is the best priced, bestselling, special. - 
, edition Cortina ever. ; 

' The Capri 2.8.Injedian. Our sports car 
ifyoulikeandthefastekcarES^S 1 * can buy. y„; 
(130mph top speed**). 

And of course, theremarkableEscort (Also - 
_ available with the new economy engine.) 

Car ofthe year when it was launched. Simply 
' the most efficient, practical, and let’s notforgetistylish 
example of extemporary motoring. 

This superb range of cars naturally possesses ~ 
therenownedFcrd reliability and lowcostdcwnership.' 


And the extent of the 1200 strong dealer 
network means youfre never far from a Ford expert*!? 

Benefits like top quality (and modestly 
priced) Motoraaft parts, the after sales service r. 
called Ford Sure’ plus Extra Cover', Ford’s V 
optional 2nd and 3rd year warranty plan, together'! 
with all the other benefits of owning a Ford mean j 
the total Ford package is unrivalled. - 

Needless to say, Ford resale values also ?£/. .... 
remain consistently ahead ofthe competition. ?! - 
So there we have it; a cross section of . ; 

themost comprehensive, successful car range in'! .’ 
Britain today. * .... •• 

Thafs why Ford really does give you mere.'#: 
It must make our competitors very cross toff! 
be reminded of them. 

When all they can make is comparisons. 

. While we make all the Fords. 










w- 1 

$ 



t 



5 Wt 




m 







% 


- - tnft* 




FIESTA 1.1L §p- 




mmmi : ? 
#111$ 



ESCORT XR3 





HKifcSi; 


mmm 








CORTINA CRUSADER 


.the workfsbest selling $ar inl98L 


. : & rfeaCrusacfe 

■ ■/ ; at" ' ’ i" "•■■■ "■ ■ s • • J 

*.» . s..»v -i#i3k.:.pw0wvi- 


:!1BS 




3^1 


w 








© 









■ms* 


Ford gives you more. 



GRANADA 2.8iGhia X 


CAPRI 2.8 Injection 


Nothing in its. price bracket can.catch the 
Capri Z8 Injection. 




t2Si Granada GhiaX Saloon(Automatic) £11995 


Ddtyeryandnumberplates at extra cost “Motor ro^itestesUmate, 



















6 


UK NEWS 


Financial Times Friday July 9 1982 


BA delays 
publication 
of accounts 
and report 

By Michael Donne, 

Defence Correspondent 
BRITISH AIRWAYS is delay- 
ing the publication of its re- 
port and accounts for 19S1-82 
until early October. Normally, 
the report is made public in. 
July or August. 

The airline will not comment 
officially on the reasons for this 
delay hut it is believed that 
one factor may be the desire 
of Sir John King, chairman, to 
ensure that all the costs of the 
recent voluntary redundancy 
programme, in which about 
9.000 staff left the airline, are 
included. 

. It is still the Government's 
intention to achieve privatisa- 
tion of the airline before the 
next general election. A Sep- 
tember 1983 target date is be- 
lieved to have been set for the 
sale of shares to the public. 
The precise amount has not 
been settled. 

In 1980431. the airline in- 
curred a loss after tax of £145m. 
The loss for 19S1-SE is likely 
to be considerably greater, for 
several reasons. 

One is the redundancy pay- 
ments. which are believed to 
exceed £i20m. 

Another is that interest pay- 
ments on new equipment, which 
last year were running at £?3m, 
■will be much higher. This is 
because of the heavy burden 
of financing the fleet u£ 17 Boe- 
ing T5Ts. now in full produc- 
tion with deliveries due to start 
early next year. 

Also, the operational loss, 
which topped fffnm in IS8H-S1, 
is likely to he higher. This re- 
sults from rhe continuing air 
travel recession, the air traffic 
controllers’ dispute last year, 
and other industrial disputes 
which hit the airline severely. 

The loss in- 19SI-S2 seems 
likely 10 amount to not less 
than about £30ilm and may be 
considerably higher. 

BA has been making .stren- 
uous efforts in recent months to 
put its house in order, with 
further staff cuts, route cuts, 
aircraft sates, reorganisation of 
the operating division and pro- 
perty disposals. 

The labour force is now down 
to about 42.000. Many believe 
that it must he reduced fur- 
ther. to about 35.000. before the 
airline can expect to start earn- 
ing profits. 

Further substantial changes 
are likely throughout 19S2. with 
some further cut# in unprofit- 
able routes the most likely de- 
velopments. 


BNOC announces big 
North Sea discovery 


BY' RAY DAFTER, ENERGY EDITOR 


BRITISH NATIONAL Oil Cor- 
poration has named a new North 
Sea oil discovery— -the Don Field 
—as a prelude to a develop- 
ment programme costing 
hundreds of millions of pounds. 

The field is next to BNOC's 
Thistle Field, in the north-east 
corner of block 211/18. about 
130 miles north-east of the 
Shetland Islands. It is estimated 
that the discovery contains 
between 80 m and 120 barrels 
of recoverable oil reserves. 

BNOC said last nigbt that it 
was now evaluating possible 
methods of developing the field. 
Production methods under con- 
sideration are thought likely to 
include the installation of a fixed 
steel platform or a purpose-built 
floating platform. 

However, it is likely to be 
many months before BNOC and 
. its partners are in a position 
i to submit a formal develop- 
ment plan to the Depart-ment 


of Energy. The field, formerly 
known as “ Area 13 " has been 
named in line with the oil 
corporation's policy of choosing 
the names of British rivers — 
like Clyde — for its discoveries. 

Partners in the Don venture 
also include Santa Fe Minerals 
(UK), Dcminex UK Oil and 
Gas, Tricenlrol Exploration UK 
and Charterhouse Petroleum 
Development. , 

The partnership is currently 
using the semi-submersible 
drilling rig Bendoran to test 
another oil discovery in the 
south of block 211/18. one of 
the heavily-drilled concessions 
in the North Sea. 

• A him that another small 
North Sea field — the Buchan 
discover y — could be twice as 
productive as previously 
thought was given yesterday by 
Goal Petroleum, one of the 
partners In the venture. 

The field, 100 miles north- 


east of Aberdeen, has proven 
recoverable reserves of 50m 
barrels, according to the 
operator, British Petoleum. But 
petroleum consultants Gaffney, 
Cline and Associates — commis- 
sioned by Goal Petroleum — 
estimate that the field contains 
55.5m barrels of recoverable oil. 

The consultants add that it 
is possible that eventually as 
much as 111.9m barrels could 
he recovered. They believe that 
a total of 493m barrels could be 
trapped in Buchan’s reservoir 
rock. 

Publication of the new 
Buchan reserve estimates coin- 
cided with an announcement 
that Goal Petroleum is to seek 
a full public listing on the Stock 
Exchange and is to raise about 
£5.5m through a rights issue. 

Mr David Boyd, managing 
director, sold the money would 
be used for further exploration 
and evaluation drilling. 

Company Report, Page 20 


Masefield wants 20% fares cut 


BY HAZEL DUFFY, TRANSPORT CORRESPONDENT 


SIR PETER MASEFIELD 
London Transport's outgoing 
chairman, wants bus and under- 
ground fares cut by 20 per cent 
and held at That level for at 
least n vear. 

To cut fares. Sir Peter said. 
LT must achieve increased 
efficiencies and be guaranteed 
a public subsidy of £340m a 
year, in be maintained in Teal 
terms for at least five years. 

The new subsidy, he added, 
should cover 41 per cent of 
costs and bp met half by central 


government and half by rate- 
payers. This implies a return 
to the subsidy level before 
Greater London Council's cheap 
fares policy was introduced 
last October. 

Sir Peler's statements were 
made on publication of the 
report and accounts of LT for 
198 i. 

The -final LT deficit for 1981 
was £64.7m after payment nf 
grants by the GUC of £ 1 62.2m. 
The figure compared with the 
original budget forecast for the 


year of £17.2m deficit, and with 
a surplus of £l.lm in 1980. 

After nearly three months of 
the cheap fares policy followed 
by the 96 per cent increase In 
fares on March 21 as a result 
of the Law Lords' judgment, LT 
is operating closely to its re- 
vised budget. 

Sir Peter, who will be suc- 
ceeded as chairman by Dr Keith 
Bright on September 1. said 
yesterday that “ current lack of 
stability >of policy is profoundly 
unsatisfactory. 



SUMMARY 

OF FARES, PASSENGERS AND REVENUE 1981-82 

- - 

Date 

Fares 

Pasengers 

Revenue 

Ratepayers’ 
contribution 
in a full year 

Total grants as 
a proportion of 
total expenditure 

October 4 1981 

down 32% 
up 94% 
• up 33% 

up by 10% 
— from S) to 
6 million a day 

down by 25% 

up by £125 
million 

. up from 29% 
to 54% 

March 21 1982 


down by 18% 
— from A to 
5 million a day 

up by 45% 

down by £204 
million 

down from 54^ 

Total effects 


down b y 41% 
—■from 5) to 
5 million a day 

«P by 23% 

down by £81 ' 
million 

down from 29% 
to 27% 


Only 27 per cent of total expenditure is now covered by grants. London Transport receives a lower rate of 
subsidy than almost- any other major urban transport undertaking in the world. - - 



Australian 
initiative on 
carrier sale 
irks Nott 

By Bridget Bloom, Defence 
Correspondent 

THE AUSTRALIAN Govern- 
ment’s decision to send its 
Defence Minister and a high- 
powered team of defence 
officials to London to dismiss 
the future of the aircraft- 
carrier HMS Invincible has 
considerably embarrassed the 
British Government 
Mr Ian Sinclair and his 
officials, inducting Mr TV. B. 
Pritchett. Secretary of the 
Defence Department, and 
Vice-Admiral David Leach, 
Chief of Naval Staff, had pre- 
liminary meetings with Mr 
John Nott. the British 
Defence Secretary nd his 
officials at the Defence 
Ministry in London yesterday. 
They will meet again next 
week. 

Bat Mr Nott is embarrassed 
at Mr Sinclair’s arrival so soon 
after the end of the Falklands 
conflict to press Australia’s 
case for its purchase of the 
Invincible, which was agreed 
before -the ship was railed on 
to play a crucial role in. the 
British task force in the Sooth 
Atlantic. 

The Government had hoped 
that the controversy over the 
sale of the ship would be 
allowed to subside during the 
summer— then the Govern- 
ment could take up the Aus- 
tralian offer, made during the 
conflict, to reconsider the safe. 

Britain agreed in February 
that Australia would buy the 
vessel for the knockdown 
price of £I75m, but would not 
take delivery until 1983, when 
the second carrier of the same 
class, HMS Illustrious, would 
have entered service. ' 

The sale was agreed as part 
of the defence cuts l»t year, 
but as the Falklands crisis 
wore on and Invincible’s key 
role became obvious, the sale 
seemed less politically 
tenable. 

But on his arrival ' in 
London yesterday, Mr Sinclair 
said that' Australia still 
“ wants to buy HMS Invin- 
vfble.” Without ft, Australia 
would have a serious gap in 
its defences, Mr Sinclair said. 

The Iron is that Mr Nott 
would still like to sell Invin- 
cible, as the lesser of several 
evils in his efforts to curb 
defence spending. Australia's 
current stand is likely so to 
exacerbate feeling among the 
Right of the Conservative 
Party, and in the naval lobby, 
as to dash Mr Nott’s few 
hopes of a sale. 


Invisible earnings rise 13% in 
1981 to record f 26.47bn 


BY ROBIN PAULEY 

t 

BRITAIN’S Increased invest- 
ments overseas produced a 
record £26.47bn in UK invisible 
earnings in 1981— a 13 per cent 
increase over 1980 in spite of 
increased competition from 
abroad. 

Sir Francis SandQands, chair- 
man of the Committee on In vis- 
able Exports, says in its annua! 
report published yesterday that 
the investments would help to 
counter the depressing, impact 
on the UK invisibles account nf 
the outflow Of ' income from 
foreign investment in North 
Sea oil developments,. 

Following the abolition of 
foreign exchange . controls, re- 
ceipts of interest, profits and 
.dividends from UK private 
sector investments abroad 
accounted foe the greater part 


of the invisible earnings growth 
in 2981. They totalled £9J2ba. a. 
rise of £1.9bn or 26- per cent 
over 1980. 

Britain's service industries 
continued to make a substantial 
contribution to the balance of 
payments with earnings of 
£16.4bn In 1981, an increase of 
more than £lbn. 

Financial services increased 
their earnings for the year by 
17 per cent to £27 2m to a total 
of fl.Sbn, and the insurance 
sector may have contributed 
more than a third of the 
improvement. 

The earnings of UK banks 
from their overseas borrowing 
and lending in foreign curren- 
cies increased by £660m to 
£1.01bn— nearly three times the 


19S0 figure— while earnings on 
sterling lending abroad rose 
strongly and more -than offset 
the effect of interest rate 
changes. Overseas income 
earned by UK oil companies 
dropped 16 per cent due to 
depressed markets, hut non-oil 
companies' direct investment 
earnings increased by around 
26 per cent 

Increasing world competition 
includes new banking facilities 
in the U.S. to new insurance 
market developments in Ber- 
muda. New York and Singapore. 
London has responded to these 
developments by, for example, 
developing new futures markets 
which will increase the City's 
attractions for International 
business, Sir Francis says. 


Productivity gains questioned 


BY MAX WIUCJNSON, ECONOMICS CORRESPONDENT 


THE underlying improvement of 
British industrial productivity, 
which started in 1980, continued 
through last year— but the gains 
may be. more modest than they 
appeared, says a research study 
published -today. 

The study, by Oxford Econo- 
mic Research Associates, warns 
that some of the gains made in 
the recession mig ht -disappear 
when output starts to recover. 

Official figures suggest that 
output per person -increased by 
about 10 per cent between the 
fourth quarter of 1980 and the 
fourth quarter of 1981. There 
has been considerable debate 
in the Treasury and the Bank 
of England about Whether the 
improvement represents a fun- 
damental shift in attitudes and 
work practices, or whether it 
represents only the normal in- 
crease expected when output 
recovers- 

Most commentators are now 
agreed that the rise In produc- 
tivity during 1980, when output 
was still falling rapidly, would 


not have been predicted from 
past trends. Productivity 
usually falls as lower demand 
reduces the workload of 
factories. During the recovery, 
higher output can at first be 
produced without adding to the 
labour force, hence produc- 
tivity typically increases. 

The Oxford group has looked 
in detail at the productivity 
of several different industries, 
which it says, shows different 
patterns. 

It says that most of the larger 
compahies in the UK have 
-attempted simultaneously to re- 
duce manpower, to rationalise 
and to change techniques. How- 
ever, in the heavy manufactur- 
ing sector, the lay-offs have not 
necessarily been accompanied 
by the introduction of new pro- 
duction techniques. 

Overall, it says, performance 
has been better than would have 
been predicted on the basis of 
what happened before the 
second half of 1979. “While 
real gains have not been of the 


magnitude some commentators 
have claimed, there has never- 
theless been a moderate im- 
provement,'' the report says. 

However, it says that the 
Government's view — that in- 
dustry has become " leaner and 
fitter” — sihould be regarded 
with caution. The group believes 
that one explanation for the im- 
proved trend in productivity 
might be that the recession was 
so severe that rhe more in- 
efficient' companies have gone 
out of business or have been 
taken over. It argues, Though, 
that this may have left Britain 
short of the capacity' which will 
be needed in some sectors when 
activity recovers. 

The recovery phase could 
therefore result in constraints 
on capacity, with consequent 
pressure for higher wages as 
well as the creation of new firms 
with lower productivity. 
Prodttctipity: la Lkert' <i new 
renllsm? ' „ Oxford Economic 
Research Associates. West Ewd 
Form, Aston, Oxford 


Hill Samuel to investigate 
embargo-breaking claim 


Compound interest every Wednesday 


Millions of money worries are going to be eased every 
week in the Daily Mirror. 

Stalling July H a double page spread of financial news 
and advice (banks, insurance, unit trusts, mortgages, stocks 
and shares, etc.) will be informing and allaying me fears of 
our vast readership. 

Thus imbued with confidence,your market* wffl greet 
specialist advertising with that much more knowledge 
and respect 

You will be talking to people who, in the last 12 


Contact Fe^er tasioe. Advertisement Sales Director.ar [chn Iveson Minor Group 
Newspapers, Roam EQ4,0r oil HaustNevv Fetter Lane, London ECAQ1-8223985. 


months; have opened 650,000 building society accounts, 
102,000 unit trust accounts, taken out 540,000 life assur- 
ance policies and opened up 522,000 bank accounts. 

The feature, ‘Your Money; is edited by top financial 

wizard. Bob Head. 

Its contents will be read, assimilated and acted upon. 
It will reflect the market’s needs-pretisely. 

It will provide you with a massive opportunity to 
persuade money out of piggy banks and into more proto ble 
forms of safe-keeping 



•TG19S1 


mm daily 

minor 


Private 
funds for 
Seawolf 

By L/nton Mdain 
British Aerospace Dynamics 
group is to develop a vertical 
launch version of its Seawolf 
anti-missile and anti-aircraft 
missile as a private venture. 

The decision was announced 
by the group yesterday five 
months after Mr John Nott, 
the Defence Secretary, gave 
the go-ahead for Marconi to 
develop a lightweight radar 
with improved, anti-missile 
characteristics for use with 
Seawolf. 

It was understood ho 
February when Mr Nott made 
his statement that British 
Aerospace Dynamics group 
would develop a vertical 
launch system of the Seawolf 
system to go with the Marconi 
lightweight radar. 

BAe unveiled It first in 
April at the International 
Naval Technology Exhibition 
in Maastricht but yesterday 
was the first time the comp any 
said the development was not 
funded at all by the Ministry 
of Defence. * 

The total value of contracts 
for the lightweight Seawolf 
system would eome to £75m, 
Mr Not t said in a House of 
Commons written answer in 
February. The bulk of this is . 
hke|y to go to Marconi,' with 
British Aerospace maMng the 
missiles. 

Separate funding would be 
needed for the vertical launch, 
system If the MoD decides it 
wonts to use this on future 
warships designs in the light 
Jf experience in the Falkland 
Islands. 

British Aerospace raid 
vertical launch will take Sea. 
wolf effectively into the 21st 
century. . 

TetraPak 
might open 
second plant 

By Maurice Samuebon 

TifiTRA PAX the Interna- 
tional packaging group owned 
ny the Ranging family of 
Sweden, might open a second 
factory in Britain to keep up 
with the rapid growth in UK 
sales of juices and mfUr pro- 
ducts in cartons. 

The plant would make reels 
of laminated material, sup- 
plied to drink-makers to be 
formed and filled on the 
premises. Tetra Pak’s existing 
plant at Wrexham, Oywd. is 
expected to reach full capa- 
city In about a year. Opened 
three years ago. It has doubled 
in rapacity and involved In- 
vestment of £22 ul 
M r Ofle- Andersson. the 
manager at Wrexham, said 
yesterday a new plant was 
needed. 


BY CHARLE5 BATCHELOR 
m.L SAMUEL, the merchant 
banking group, is to investigate 
a claim from anti-apartheid cam- 
paigners that one of its sub- 
sidiaries broke an Arab 
embargo on oil shipments to 
South Africa. 

Sir Robert Clark, the chair- 
man, agreed at yesterday’s 
annual shareholders' meeting to 
a request from the Church- 
backed End Loans to South 
Africa to the investigation. 

ELTSA said Walletn and Com-, 
pany of Hong Kong, which 
became a fully-owned ■ Hill 
Samuel subsidiary in December, 
had managed two vessels, the 
Salem and the Albahaa B, which 
had broken the Arab embargo. 

The group would be writing 
to the governments concerned 
to inform them of these charges. 


said the Rev David Haslam, 
ELTSA secretary. 

The Salem was scuttled off the 
West African coast after secretly 
off-loading the bulk of its 
196.000 tonne cargo - of crude 
oil in South Africa. The oil 
belonged to Shell International 
Petroleum. 

The Hill Samuel board told 
shareholders that the company 
managing a ship had no control 
over its destination or the 
cargo. 

Sir Robert told ELTSA 
questioners that Hill Samuel 
was not prepared to issue in- 
structions that Wallem should 
not. allow vessels under its man- 
agement to make oil deliveries 
to South- Africa. .. 

.He also refused a request to 
reveal the bank’s loans to South 
Africa 


NatWest offers 
bonus to 
monthly savers 

NATIONAL Westminster Bank 
is launching a monthly savings 
account today which offers a 
bonus payment over ordinary 
bank deposit rates. 

Hie move reflects the con- 
tinuing competition between 
the High Street banks and the 
building societies 

Under- the new scheme, per- 
sonal customers who deposit a 
regular monthly sum of between 
£10 and £500 will be paid a basic 
interest rate which is the same 
as the seven-day deposit rate — 
currently 95 per cent— with an 
additional bonus, initially 2 per 
cent 

Interest will be paid half- 
yearly in June and December 
and savers will be allowed one 
withdrawal and one missed 
payment during each six-month 
period. 


NEW ISSUES July 8. 1962 


FNMA 


FEDERAL NATIONAL 
MORTGAGE ASSOCIATION 


$1,500,000,000 
15.00% Debentures 

Dated July 12 . 1982 Due November 10, 1983 

• • . Series SM-1983-R . CusipNo.313586ME6 

Non-Callable ' 

Price 100% 

$500,000,000 
15.25% Debentures 

Dated July 12. 1982' : Due July 10,1987 '' 

Series SM-1987-G 6usip . No. 31 3586 MF 3 ; 
Noh^CalJable , . 1 ... ' .- 7; 7 

Price 100% 

^i^fiSS r oii auth ° nty c 2 nteinet J in Section 304(b) of the Federal ? - 

National MottgaaeAssociauon.CharterAct(12U.S.C.l716Ws«.r ' •’ .. 

^^^^Pederai'Natioria! M6rtsaqe A®o^«5n ' 

John J. Meehan . V 

Senior Vice Prosident-Fmancaand Treasurer- 


AlIeri C. SeH ; : 7 

DiroctQrpftfio&ctfQfficB 


This announcement appears as a/naffer 





I 


Financial Times Friday July 9 1982 


.1 


UK NEWS 


Merchant shipping 
contributes £lbn to 

T 

balance of payments 

BY ANDREW FISHER, SHIPPING CORRESPONDENT 


THE BRITISH merchant fleet 
contributed over £lbn to the 
■UK balance of payments last 
year, but the figure was slightly 
down on that for 19S0. 

Announcing the figures, Rlr 
Malise NIcolson, president of the 
General Council of British 
Shipping, said the Merchant 
Navy’s value to the nation had 
been demonstrated by the Falk- 
land* crisis. 

"Now its economic value is 
shown in these latest balance 
of payments figures,” he added. 
The size of the fleet has been 
falling sharply in recent years 
and the GCBS is pushing for 
special investment allowances 
to check this trend. 

The balance of .payments con- 
tribution from the fleet was 
£1.14bn aginst £1.15bn the 
year before. Gross export 
earoings were up to £2.33bn 
from £2. 24 bn before de- 
ducting such items as fuel 
costs, port dues, and cargo- 
' handling charges. 

Mr Nicolson said there was 
also a saving of £449m gross 
from the transport of imports 
and UK passengers in British 
ships. This money might other- 


wise Ttave had to be paid in 
foreign currency to foreign 
shipowners. The gross figure 
does not take account of money 
foreign owners spend in 
Britain on port and other 
costs. 

The GCBS has made dear 
both during and after the- Falk- 
lands fighting — 50 UK mer- 
chant ships were used with the 
task force — that it will renew 
its argument for new invest- 
ment incentives. 

It wants an extra 40 -per cent 
allowance above the present 
free depredation which applies 
to other industries as well Thus 
a UK shipping company order- 
ing a new vessel would be able 
to offset tax In one or more 
years with 140 pa- cent of the 
investment cost 

Mr Nicolson stressed that the 
fleet’s contribution to the 
national payments figures was 
getting smaller each year in 
real terms as the tonnage 
■ decreased. 

Last year, it fell by more than 
6m deadweight tons, or 149 
ships, to around 29m dwt . At 
the end of 1975, the fleet stood 
at a peak of 50m dwt 




Carpet 
industry 
sheds jobs 

By Anthony Mo reton. Textiles 
Correspondent 

EXCESS capacity continues to 
bedevtt the carpet industry de- 
spite a severe run-down of re- 
sources in 1981 according to 
Mr Tony Roden, president of 
the British Carpet Manufactur- 
ers Association, in his annual 
report published yesterday. 

Severe cuts in the workforce 
had brought the number em- 
ployed down to 20.200 by the 
end of the year, of whom 14,100 
were men. Four years earlier 
tiie number employed was 
33,400, with 21,700 of them 
men. 

“ With 1981 proving to be a 
very gloomy year, with a de- 
cline in the home market total 
sales volume and a significant 
increase in imports, together 
with a decrease in the level of 
exports, the opportunity has 
been taken by many companies 
to effect changes which wiH 
strengthen their position when 
the upturn oomes ” he reports. 

The cut in the workforce was 
not just the result of the reces- 
sion but was also due to the 
transition within the industry 
from a labour to a capital in- 
tensive base. 

“The economic climate has. 
however, speeded the change 
and shortened the time scale.” 
Many companies are continu- 
ing this process of rationalisa- 
tion, Mr Roden reports, espe- 
cially in an attempt to meet 
the strong level of imports 
from Belgium. But he drew 
comfort from the statistics that 
UK manufacturers still met 
over three-quarters of the home 
market last year. 

Total sides rose to 146m sq m 
last year compared with just 
over 130m in 1977. The share 
■won by home manufacturers, 
though, is estimated to have 
dropped to 113.7m sq m com- 
pared with around 125m four 
years earlier. 


NEDC 
cost £5m 
last year 

By John GHott, Industrial Editor 

RUNNING the National 
Economic Development 
Council and its 60 industrial 
committees cost the Govern* 
ment nearly £5m in 1981-82, 
according to the council’s 
annual report published 
yesterday. 

The budget of the National 
Economic Development Office, 
which serves the council and 
committees, was estimated at 
£4.05m for the year. The 
actual expenditure was 
£3.96m, of which £2.6ra was 
spent on salaries for 228 staff, 
mid £104,000 on fees to com- 
mittee chairman and outside 
agencies. 

In addition, accommodation, 
office furniture, exhibition 
facilities and other services, 
which cost a further £877.000, 
were provided by other 
government organisations. 

The number of staff is 
being cut back. It totals 217 
compared with a complement 
of 233 in 1980-81. 

In a foreword to the report. 
Sir Geoffrey Howe, Chan- 
cellor of the Exchequer, says 
' he is “heartened by the 
amount of agreement” that 
can be reached by the 
council and Its committees 
on industrial issues. 

“Inevitably there has been 
less agreement on macro- 
economic issues, but the dis- 
cussions have been valuable 
in so far as they have helped 
to define those particular 
points that divide the parties 
on the council, and allow ns 
to .examine them more 
closely.” 

National Economic Decetop- 
ment Council annual report 
J98I-S2. Free. NE DO Books, 
Mill bank Toicer, Millbank, Lon- 
don SW1. 


Savings rescue company 


FINANCIAL TIMES REPORTER 

THE MANAGING director of a 
Suffolk company has put his life 
savings into a management buy- 
out to save bis business from 
closure. 

Mr Ivor Cooper Is taking over 
Precision Engineering Products 
from Unilever. The company, 
which makes - packaging 
machinery, has lost nearly £lm 
during the past three years. 

Mr Cooper bought the shares 
for an undisclosed amount and 
has cut the workforce from 89 



1968 

i.'s 

1975 

i '*■■! 

L'M-V'c Kn-’T 

1980 

Mulliluitr si a:l"- 

\'t‘ t W 

1 ;i.’t J im's iii 
M.:s, Okttipn- 


1981 

Multitone 
launches 
digital direct 
speech intercom 

muitifone 


Mnll'i.trn- 1 
,'S ! -1 - 


■i.vJ I urni- -I SI ..'I 

7'.; r irf. s 


to 20. He will now sub-contract 
the bulk of the machining work 
and assemble ifcg machinery in 
his own premises. 

“It's the way they do it in 
the States and on the Con- 
tinent," he said at his Bury St 
Edmunds base. “ Nearly half 
my turnover will be sub-con- 
tracted during the first year." 

Mr Cooper said bis turnover 
had shrunk from nearly £2ra 
three years ago to around £1.4m 
last year as the order book dried 
up. During his first year in 
operation he hoped to reach £ 
turnover of around £800,000. 

He has sold 80 per cent of the 
factory's machine tools as well 
as the site and premises which 
he will now lease with backing 
from Barclays Bank. 

Mr Coopers main competition 
is from West German com- 
panies. He said he had not been 
able to remain competitive 
because of high overheads and 
undrr-use of capacity. 

The early reaction from 
customers had been favourable, 
he said: “They told me I 

should have done this years 
ago." 


Notice to tfee Holders of 
REPUBLIC OF PANAMA. 

ES. $70,000,000 Moating Bate 
Serial Notes Due 1990 
RSL $50*000*000 Floating Safe 
Serial Notes-Dne 1991 

Effective August 2, 1982, the 
specified office of The Indus- 
trial Bank of Japan Trust 


245 Eaxk Avenue 
New York, 5^10167 XL&A. 

July S* 1983 


Doctors call 
for ethics 
review 

THE ETHICS committee of the 
British Medical Association has 
been urged to examine how 
severely handicapped babies 
should be treated, after claims 
that babies have been allowed 
to die. 

The BMA’s ammal representa- 
tive meeting in London yester- 
day called on the committee to 
give the Issue further con- 
sideration. Advice already in 
the BMA’s ethics handbook 
states that the ultimate choice 
on whether a child be treated 
or not lies with its parents. 

The decision to ask for a re- 
view of the present guidance 
follows the trial last year of Dr 
Leonard Arthur, a Derby pae- 
diatritfon, who was acquitted 
of a charge of manslaughter of 
a mongot baby. 

Dr Ian Jessiman of Chlsle- 
hurst, Kent, told the meeting: 
" With progress in medical tech- 
nology we have lately found 
ourselves faced with new ethical 
problems in the cars of new- 
born, but handicapped infants. 
I believe that a new-born child 
has the right to be fed, warmed 
and cherished.” 

Dr James Appleyard, another 
Kent paediatrician, said further 
consideration of the ethics was 
unnecessary and potentially dan- 
gerous. It could be interpreted 
as undermining existing policies. 
If the issue were raised again, 
parental rights and the respon- 
sibilities of doctors might be 
succeeded by stricter legal 
definitions which would raise 
more problems. 


MANUFACTURERS’ SALES SURVEY 


U.S. dominates Europe’s electronics market 


BY GUY DE JONQUIERES 


SALES by American manufac- 
turers account for almost a 
third of the total activity in 
Western Europe’s electronics in- 
dustry and exceed the turnover 
of any other national group of 
companies, according to a sur- 
vey. 

The Mackintosh European 
Electronics Companies File 
finds that in 19S(M»1, 28 of the 
100 largest electronics manufac- 
turers ‘ operating in Western 
Europe were American. The 
U.S. companies’ combined sales 
in Europe of imported and 
locally-made electronics pro- 
ducts .were $31.5bn (£ 18.43m). 

Total sales by the 100 com- 
panies were $100bn. The import- 
ance of the American share 
was even greater than it might 
seem because the figures used 
for European companies were 
for worldwide sales, not just 
business in Europe. 

West German companies 
formed the second^ largest 
national group, with a total 
electronics turnover of $19.2bn. 

The figures for the British 
and French electronics indus- 
tries — $I2.3bn and $11.3bn 
respectively — were 'about the 
same as the turnover of the big- 
gest single company. Philips of 
the Netherlands (Sll.lbn). In 
all cases, companies' non- 
electronics business is excluded. 

Measured on the basis of 
their worldwide business. 
American companies’ pre-tax 
profits averaged 12.4 per cent 
of sales. That was double the 
levels of the British and French 


EUROPEAN TOP TWENTY 1980-8] 


Country; 

Group 

Electronics 

Elec as % 

Profit 

before 


Profit 

before 

Invstmnt/ 

Ne 

Philips 

Sales 

$m 

11112 

Group 

Total 

60 

Tax Sales 
% 
1.9 

Sales/Em pi 
$000 
49.2 

TaxEmpl 

932 

Sales 

% 

6.9 

USA 

IBM 

9435 

99 

225 

76.9 

17293 

30.9 

WG 

5iemens 

8676 

49 

5j0 

51.1 

2555 

153 

USA! 

ITT 

8632 

50 

6.7 

53.2 

3586 

12.1 

Fr 

Thomson-Brandt 

6470 

75 

3.1 

673 

2064 

43 

UK 

GEC 

3772 

47 

13.7 

41.7 

5736 

4J 

WG 

AEG-Telefunken 

2912 

36 

(1*9) 

585 

(118) 

103 

Sdn 

LM Ericsson 

2022 

70 

7 J 

42.1 

3247 

5.9 

Fr 

CGE 

1919 

18 

63 

47.9 

3772 

43 

USA 

Xerox 

1862 

.80 

16 5 

68.3 

11Z5B 

18.7 

It 

Olivetti 

1733 

68 

6 A 

48.1 

4387 

8.9 

UK 

Plessey 

1674 

85 

10.0 

41.5 

4155 

213 

UK 

ICL 

1665 

100 

3.5 

503 

1764 

113 

WG 

Grundig 

1521 

100 

(5-4) 

49.4 

(2676) 

2.6 

Fr 

en-HB 

1488 

100 

3.4 

733 

2515 

30.9 

UK 

Thom-EMI 

I486 

27 

43. 

48A 

2057 

103 

WG 

Robert Bosch 

1382 

21 

6.0 

533 

3184 

11.7 

USA 

Hewlett-Packard 

1136 

100 

16.9 

54.4 

9175 

18.4 

UK 

Racal 

1125 • 

90 

13A 

68.9 

9405 

7.9 

USA 

Honeywell 

1059 

100 

U 

50J 

4177 

173 

Sales figures are for European electronics sales of 

non-European Companies and worldwide sales of 

European 


Source; Mackintosh European Electronic Companies File. 1981-82 





industry groups, while the 
average for West German com- 
panies was only 2.1 per cent 

Japanese companies’ pre-tax 
profits averaged 9-3 per cent of 
sales. Eight at the 100 top com- 
panies were Japanese, with a 
total European turnover of 
$3.7bn. 

The survey finds that Japa- 
nese companies far outstripped 
their competitors in terms of 
worldwide sales per employee, 
averaging $116,600 overall. That 
compared with $68,300 per em- 


ployee for the German group. 
$55,500 for the Americans and 
$48,200 for the British. 

But fixed assets per employee 
of. Japanese companies, averag- 
ing $15,600. were no higher 
than for their U.S. and German 
competitors. Only British and 
French companies (with assets 
per employee of 810,800 and 
$12,500 respectively) were sig- 
nificantly below the Japanese 
leveL 

“The Japanese may be em- 
ploying more modern, efficient 


capital equipment, or working 
longer hours per employee fo 
obtain their huge improvement 
in sales per employee,” the 
survey says. 

The survey is based on com- 
panies’ reported results for 12- 
month periods between January 
1980 and June last year. 

Mackintosh European Elec- 
tronics Companies File, £165. 
Published by: Benn Electronics 
Publications, Suite 9, Delaport 
House, 57. Guildford Street, 
Luton LU1 2NT. 


Emigration 
from Ulster 
doubles 

By Our Dublin Correspondent 

THE RATE of emigration 
from Northern Ireland more 
than doubled in the 1° years 
to 1981, according to the pre- 
liminary report of the 
Northern Ireland census. 

Net outward migration 
during the decade totalled 
almost 134,000 — or more than 

13.000 a year, compared with 

6.000 a rear in the 1960s and 

9.000 in the 1950s. 

Contrary to expectations 

the province's population fell 
slightly from 1,536,065 to 
1,509,892. The emigration 
figures exceeded official Gov- 
ernment estimates by about 30 
per cenL 

Mr John Fatten. Under- 
secretary of the Northern 
Ireland office, blamed terrorist 
violence and the depressed 
economic conditions for the- 
increase in emigration. The 
Government believed the 
province was losing “ its 
brightest and best young 
people.” 

The population of Belfast 
fell by one quarter on the 
1971 census figure of 417,000, 
but there was a corresponding 
rise in the numbers living in 
nearby districts such as 
Lisburn, County Antrim, and 
in North County Down. 

The census was taken 
■during last year's IRA hunger 
strikes, but the response rate 
wks 98.7 per cent, in spite of 
intimidation and calls for a 
boycott. 


l . 

e ; 

5 ■ 

I 

> 

l 

t 


: i 


V..': ’ 




worft stretehyour arms, 



go cross- 


Adjustable 
.screen angle 
to minimise . 
eves&ain.' 


Big 15 inch, 
screen with 
easy- to-read 
goldon 
bronze display 
type. 


It’s the new ICL Word Processor Unlike most wohj processors, it’s not just a glorified 
typewriter for the odd letter or document, it’s ahairi-woridog nine-to-five computer system, 
to take a load of work, and worry, off your shoulders. . . - 

And since it’s designed with heavy usage in 
mind, it’s designed to special high standards to 
minimise fatigue and maximise comfort, qualities 
glossed overby most word processor 
manufacturers. 

It's simple, very attractive, and beautifully 
easy to use. 

And, most important of all, it can produce 
first class reports, documents, letters and even •• 
has a built-in calculator package. 

And because ICL is Europe’s leading . 
computer company, with thousands of satisfied 
users in over 80 countries worldwide, we can 
offer a quality of business applicat ions experience 
and ICL Trader Point service back-up that’s second 
to none. 

The ICL Word Processor also represents an 
exciting new springboard for you. The beginning 
of an Office System Network, in which co-related 
ICL products will meet all your needs. And that 
may not be so far in the future as you think. 

So take the first step now. Fill in thecoupon. 



. Lightweight 
keyboard for 
. .convenient 
'.'pcfeiJSofltftg. 



icy Word Processor 


traderpoint 

To: ICL Trader Point, ICL House, Putney. London SW15 1SW. 
Pease send me further information on the new ICL Word Processor. 





Name 


Position' ■ 



Company Name & Address 








Telephone 



Tvpeol Business 




m 









8 


UK NEWS 


John Griffiths examines the arguments for relaxing borrowing controls on car sales 


Financial Times Friday July 9 1982 


Ford wins big share 


tlUUU VJ1I1UUI3 CAiUlmlCO UJLC aigUiliCllLd 1U1 ICJilAJLUg UUlIUWIJig lAJIIUL'JJLO wn veu oaivw X t/JL UL ? " JUltJ Mlg UI 1 MX V 

Motor trade prepares to lobby oyer hire purchase 0 f van sales market 

ENG HIRE purchase SMMT th* Mium a mm*. *« rsm wmrid train at the now resrictinn Japanese cars 0 Vanxhalls and TaB>ots said in In the used wrmaiket . Deal ere 1 J 


RELAXING HIKE purchase 
controls on cars would not be 
inflationary, according to the UK 
motor industry. The Exchequer 
would be a net beneficiary by 
£2 5m: it would not lead to a 
big rise , in imports; it would 
increase the new car market by 
40.000 to 80.000; it would help 
free the logjam in the used car 
market which is also depressing 
new car sales; and it would help 
the entire, embattled industry, 
from indigenous manufacturers 
to dealers and component 
makers. 

It would also he a step 
towards eradicating an anomaly: 
very few consumer purchases 
aprt from cars are now subject 
to any formal deposrt/repay- 
meat period restrictions. 

These are the arguments 
which will be .put forward 
within the next month when 
the Society of Motor Manu- 
facturers and Traders makes a 
major presentation to the 
Government. It aims to get 
current restrictions — one-third 
deposit, repayment in two years 
— changed in favour of a 25 per 
cent deposit and a three-year 
repayment period. 

It will not he the first time 
the industry has lobbied for 
such a move in the five years 
the controls have been in force. 
At the end of last year the 


SMMT, the Motor Agents 
Association representing the 
retail trade, and the Finance 
Houses Association formed a 
joint front to seek such a 
change, without success. 

But the fact that the SMMT is 
not prepared to see the matter 
rest — indeed, that it is going 
higher up the list of priorities 
— was clearly signalled at the 
end of June on the accession of 
Talbot's chairman, Mr George 
Turnbull, to the SMMT presi- 
dency, Within hours he was 
letting fly at successive govern- 
ments of the past 20 years for 
using the industry as a “ milch 
cow" to solve their own fiscal 
problems. 

The campaign is being re- 
launched against a background 
of forecasts that the UK new car 
market will show no growth this 
year over the already depressed 
level of 1981. when 1.48m cars 
were sold. Mr Turnbull says 
be could see it sinking as low as 
1.45m. 

Mr' Turnbull’s argument that 
a relaxation of HP controls 
would be non-inflationary could 
be crucial. He insists this is the 
case because there Is no scope 
for an overall increase in pur- 
chasing power. What would 
happen instead is that there 
would be a discretionary ghift in 
the way that spending “ power 


is used. Cars would gain at the 
expense of other consumer 
spending. “ The main point is 
that out of that purchasing 
power, we are just trying to get 
a fairer share for cars. We see 
no case for the Government to 
continue this discrimination any 
longer." 

The extra . revenue for the 
Exchequer, he argues would 
arise because of the 10 per cent 
car tax imposed on new vehicle 
sales- There would be no effect 
on VAT “because it is cait- 
celled out through merely 
switching from one consumer 
goods to another." 

Implicit in this argument, 
however, is that the SMMT has 
little real hope of making any 
progress on its other market- 
boosting demand: the cancella- 
tion of what it has called the 
" pernicious ” car tax. 

Mr Turnbull rejects the 
argument that relaxation could 
lead to a disproportionate rise 
in imports. This is exactly 
what happened when HP con- 
trols were last relaxed in' the 
early 1970s. But there are a 
number of factors which make 
the current situation different: 
• In he earlier case, relaxation 
came when Japanese cars were 
staring o make noticeable in- 
roads into the UK market,' 
mainly among private buyers. 
The “gentlemen’s agreement” 


now restricting Japanese cars 0 
11 per cent had not appeared; 

• The UK was just entering the 
EEC, so it was inevitable that 
traditional European importers 
were in any case about to have 
much greater access to the 
British market: 

• The UK companies at the 
time were undertaking major 
dealership rationalisations, in 
many cases pulling out of small 
town outlets which were then 
snapped up as franchised out- 
lets by Japanese and other 
importers, thus helping to 
increase their penetration; 

• Finally, the UK industry was 
going through one of its 
blacker periods of industrial 
relations problems and in many 
cases was unable to supply 
vehicles, allowing the gaps to be 
plugged by importers. 

None - of these conditions 
apply now, and it is argued 
that a relaxation would not 
disproportionately increase 
imports’ market share, which so 
far this year stands at 57.7 per 
cent. 

This may not tie strictly the 
case. Although close to 90 per 
cent of company car purchases 
are estimated to be of British or 
British-badged vehicles, about 
60 per cent of private buyers’ 
purchases are estimated to be 
imports. 

Also, roughly half of Fords, 


Vanxhalls and Talbots said in 
the UK last month ' were 
“captive” imports from Con- 
tinental plants, so the degree to 
which import penetration might 
rise further- would also be 
governed by. their ability to 
meet higher demand from plants 
in the UK. 

Vauxhall would be in a 
difficult position with its highly 
successful Cavalier, UK output 
of which is already at maximum 
capacity. Adequate capacity 
does, however, exist for its 
smaller Chevetta and Astra 
models. 

Talbot has plenty of capacity 
for" its Ryt on-built Horizon, 
Solaro and Alpine models, but 
its most successful car is the 
imported Samba. 

Ford could expect any in- 
crease in Fiesta and Escort 
demand to .be met from UK 
production, though if there 
were a sudden surge it probably 
would draw on Continental 
plants. Cortina stocks are very 
high— it is now on production 
run-out ahead of Sierra — and 
easier HP would serve mainly - 
to help dispose of them. 

BL,- currently voicing dis- 
approval of the level of captive 
imports, would nevertheless also 
expect to benefit. . 

But, like most manufac- 
turers. it is particularly con- 
cerned to see some movement 


In the used car-market Dealers 
are finding disposal of used cars 
difficult and are therefore 
reluctant to take trade-ins— a 
factor also depressing demand. 

But will all the arguments 
wash with the Government? 

The Treasury is .not likely to 
greet the demands for easer 
credit with any enthusiasm 
because of the difficulties in con- 
trolling ■ sterling bank lending 
to the private- sector. In the 
quarter to the end of June it 
rose by a record £4S7bn under- 
lining the Government’s diffi- 
culties in- controlling private 
sector borrowing even at a time 
oE low economic ’recovery. 

There was also another spurt 
in the already buoyant levels 
of lending .to individuals with 
bank credits ' for 1 house pur- 
chases t reaching new record 

Consumer credit organisations 
also report buoyant demand 
levels with .applications running 
about 8 per cent ahead of last 
year’s levels. This reflects the 
fact that, although the real value 
of incomes has been f all i n g, 
people have .been trying to 
maintain previous levels of 
consumption through increased 
use of credit. Loans for car 
purchases, are .repeatedly cited 
as one of the principal causes of 
the continuing boosts to credit 
business. 



The fourth test flight 
and landing of America’s 
reusable Space Shuttle 
Columbia marked the end of die first phase 
of man’s most complex undertaking, and the 
exciting beginning of the next. 

The test flights have ended. And on June 30, 
America’s second Space Shuttle, Challenger, was 
completed on schedule and rolled out of its assembly 
facility in Palmdale, California. Now two Shuttles are 
ready to go to work, for all of us. 

Built by Rockwell International, the Space 
Shuttle is the essential element of NAS As Space 
Transportation System. And it will bring many of the 
benefits of space down to earth for the first time. 

. It promises to introduce a more efficient era of 
communications, navigation, agriculture, and energy 
management. The Shuttle’s large cargo capadtywifi make it 
possible to launch larger more sophisticated satellites 


into earth orbit, and then 
service them routinely which 
will extend their usefulness 
and improve their operations. • 

The Shutde will make it possible to manu- 
fecturesuper-strong alloys, ultra-pure glass, perfect 
semiconductor crystals, life-saving medicines, 
and other products that can’t be made on Earth. 

• It will provide added support to national security, 
and with the space telescope, which it will place 
in orbit in 1985, the Shuttle will enable us to study 
the nature of deep space more closely, and develop a - 
better understanding of our own planet, as well* 

As prime contractor to NASA for America’s Space 
Shuttles, Rockwell International is especially proud 
of its essential role in their development and production. 
Nowthat the doors to space are truly open; the ' 
dream of putting space to workforall the people of the Earth 
is at last a reality. 


vacated by Japanese 

8Y KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT 



Rockwell International 


-where science gels down to business 

Rockwell Tnteirwncml is a $7 Mlicm worldwide, imite-indnstivca m o attv a pp l ying advanretedmok^ raaducts in eWi raiV. 


FORD has benefited most from 
the decision by Japanese manu- 
facturers to restrict shipments 
of light commercial vehicles to 
Britain this year. 

Registrations of Ford Transit 
vans in the first half of this year 
rose by nearly 64 per cent, from 
35.116 to 24,759. This improved 
the company's share of the UK 
market for medium and heavy 
vans from 31.5 to over 45 per 
cent by the end of June. 

Ford made sure it would pick 
up a major share of the business 
left by the Japanese by mount- 
ing two substantial marketing 
campaigns. The second, which 
took effect at the end of May. 
involved some price cutting and 
improvements to the Transit's 
specifications. 

At the end of 1S81 Japanese 
companies indicated they would 
hold shipments of light com- 
mercial vehicles to cut their 
share of the British market to 
below 11 per cent compared 
with the 17 per cent at which it 
was running last year. Im- 
porters of Japanese commercial 
vehicles say their aKocatioos for 
1982 have been cut by about 
half from last year’s leveL 

In the first six months of this 
year, according to figures from 
the Society of Motor Manufac- 
turers and Traders, registrations 
of medium and heavy va ns r ose 
by 14 per cent, from 47,873 to 
54,597. . 

Apart from Ford, the other 
companies to show substantial, 
progress included Mercedes- 
Benz, with sales up 68.4 per cent 
from 1,337 to 24252. helped con- 
siderably by the introduction 
of petrol-engined versions of its 
vans midway through 1981. 
Petrol, rather than diesel 
engined models account for 85 
per cent of this particular 
market 


. Renault, with its new Trafic- 
Master range, pushed up sales 
249 per cent from 483 to 1.721, 
BL’s subsidiary. Freight Rover, . 
outperformed the total market 
with sales of Sherpa vans up 
nearly 20 per cent, from 4,043 
to 4,842 over the six months. 

The society's' statistics show 
that total commercial vehicle 
registrations for the half-year 
rose nearly 7 per cent from 
110,185 to 117,785. Imports 
accounted for about 28.9 per 
cent in both periods. 

There was' a considerable 
difference between sectors. 
Registrations of trucks and 
artics (above 3.5 tonnes gross 
weight) went up by only 1 per 
cent from a very low level of 
22,514 to 22.773. 

Leyland Vehicles. BL’s heavy 
commercial subsidiary, suffered 
badly from the impact of its 
strike early in the year and Its 
registrations slumped by nearly 
25 per cent in the six months, 
from 3,665 to 2,752. 

Importers benefited from 
Leyiand’s weakness. Scania 
registrations went up 74 per 
cent, Volvo up 51.5 per cent. 
Iveco up 46-6 per cent and 
Mercedes up 29 per cent. The 
Japanese have agreed not to 
export built-up vehicles above 
3.5 tonnes gross to the UK 

light van sales In the six 
months rose by 4.8 per cent 
from 31.583 to 33,108, but bus 
and coach registrations fell by 
more than 12 per cent from 
2,695 to 2.366. 

Sales of light four-wheel- 
drive vehicles were down 10.S 
per cent from 5,530 to 4,951. 
BL’s Land Rover offshoot did 
better than the market as a 
whole and suffered only a 4 per 
cent decline. 


Steel consumers attack 
Government prices policy 


BY MARK WEBSTER 

BRITAIN’S STEEL users yes- 
terday delivered a stinging 
attack on the Government’s 
steel policy. 

Mr Laurence Kelly, vice-chair- 
man of the British Iron and Steel 
Consumers' Council, said last 
winter’s steel price rises had 
Inflicted “serious damage" on 
some steel consuming industries. 

Mr Kelly said it was ironic 
that a Government whose 
declared aim was to encourage 
the private sector should pursue 
policies which protected the 
nationalised supplier at the cost 
of private industry. 

“Many steel users have 
suffered a serious erosion of 
their profit margins as a result 
of steel price increases which 
they have not yet been able to 
recover ” he told the council’s 
annual, meeting. 

The council, whose members 
account for 60 per cent of the 
steel consumed in the UK has 
already submitted evidence to 
the Department of Industry 
about the effect of the price in- 
crease?. 

Mr Kelly saiid the council was 
awaiting the Department of In- 
dustry’s reactions to the evi- 
dence. In the meantime, talks 
have also gone on with Viscount 
Etienne Davignon, the Euro- 


pean Industry Commissioner. 

Viscount Davignon had as- 
sured the council that in future 
it was his intention to give 
equal weight to the views of 
both consumers and producers 
in developing an EEC steel 
policy. 

The council's lobbying has 
already had some practical 
effect, in opposing the mainte- 
nance of production quotas for 
18 months, said Mr Kelly. After 
representations from some gov- 
ernments, and consumers, the 
quota period was reduced to 12 
months. 

Mr Kelly said steel prices 
could again begin to firm up 
when the current bout of de- 
stocking ends but it would not 
he enough to sustain significant 
price increases. 

He agreed that there would 
he pressure from producers for 
further price, increases to re- 
flect their growing costs and 
that it might be necessary to 
allow some small increase in 
1983. 

But he said that with 50m 
tonnes of excess capacity in the 
EEC Lt was difficult to see the 
justification for anything more, 
particularly when account was 
taken of the users' markets and 
profit margins.' 


Report claims up to 10m 
people ‘poverty-stricken’ 


BY IAN HARGREAVES 

ABOUT 10m people, nearly a 
fifth of tiie population, are 
“experiencing a poverty-stricken 
life,” the author of a Govern- 
ment-financed study fnto social 
deprivation said yesterday. 

Dr Muriel Brown, lecturer in 
social administration at the Lon- 
don School of Economics, was 
introducing a publication sum- 
ming up 10 years of- research 
initiated .by Sir . Keith.Joseph 
when he was Secretary of State 
tor Social Services In .the Heath 
Government 

Sir Keith was anxious to .test 
his instinct that major social 
problems associated . with 
poverty often ran.:, in . families 
and -were transmitted ' - from 
generation to generation,, with- 7 
out : much Impact - from • the 
support mechanisms ■ of the' 
welfare state. 

..He felt that- one r possible 
explatation tor tiust, "-cycle ; of 
deprivation ” was the “parent*, 
ing ’ skills " . of the poorest 
families. • 

It has taken about 70 people 
10 years to complete 30 separate 
pieces, of. research^. The results 
are . summarised in. the "book, 
to be published next week at-. 
* -coft qf £750:000. ■" “ r ; ; - . 

. Funded by the Sotf&l Science ** 
Research Council, a body whose, 
usefulness. - Sir: Keith. - her 
-.questioned; and the Depaitoent- 
of Health- and . Soda! Security, 
the book, concludes -.that- Hr. 
Keith's . belief true. Only to 

a, limifed degree. - ; v'- 

..The research found evidence 
of Individuals breaking away.’ 
from the pattern of poverty in 
their own-, family,' though it ■ 
•found'..' deprivation . common : 
*monff. r' certain' -identifiable 
groups,- ' notably single-parent- 
families, ethnic ; minorities and 


urban zones and Northern Ire- 
land, possessed a dispropor- 
tionate number of deprived 
families, 

/ The study steers a middle 
course in explaining depriva- 
tion, stating that the causes are 
a mixture of personal influences 
and the effects of the “ system," 
and suggests that the only way 
to deal with the problem is by 
a fragmentary and piecemeal 
improvement of benefits and 
opportunities for specific 
groups within the framework of 
the existing social security laws. 

In particular, the authors say 
-that the long-tens unemployed 
should be 1 eligible for the pre- 
mium rate of supplementary 
benefit that child benefit should 
be increased, and that poor 
families should be allowed to 
: earn more before suffering loss 
of benefit 

^“ Imaginative policies of posi- 
tive. discrimination " are 
heeded, says the study, but It 
strongly contests . the claim that 
tiie "welfare state” has out- 
lived its usefulness. 

Despfte pie: Welfare State, by 
Muriel Brown and Nicola 
Madge. Bebtemann Educational 
Books £495. 


families, of unskilled workers. ^- 
Certain areas, especially'izmer 


New offer for 
London busmen 

- Mf Our labour Staff 
LONDON. TRANSPORT has 
’made a new— but undisclosed— 
pay. offer, tothe 20,000 London 
•bn* workers. A -conference of 
upi on. representatives will con* 
..aider the offer next week. 
r.Bus - workers' previously 
rejected an offer of a 5 per 
*ent increase with an extra 2 
per- cent dependent on produc- 
tivity commitments. 




9 


Financial Times Friday July 9 1982 




UK NEWS - LABOUR 


Miners’ union will TUC policy 

renew pressure ££? 

for early retirement agreement* 


Unions fear water council loss 


BY BRIAN GROOM, LABOUR STAFF 


BY JOHN LLOYD, LABOUR EDITOR 


THE NATIONAL Union of 
Mineworkers ended its four-day 
conference in Inverness yester- 
day pledged to resurrect 
unfulfilled resolutions — and 
press them on the National Coal 
Board once more. 

Thig wHl- mean that demand 
for retirement at 55, together 
with higher severance payments 
and other, benefits, will now 
join the 31 per cent wage claim 
to be pursued this year. But 
these claims are likely to be 
presented separately. 

Ur Jack Collins, secretary of 
the Kent area, said a motion— - 
from Derbyshire— was the most 
important of the conference, 
and would allow the unions to 
bring back on tire agenda issues, 
which had been dropped. 

It places a big burden - on 
unions and Coal Board negoti- 
ators over the coming year and. 
provides a further range of 
issues on which industrial 
action could be called. 

Delegates and union leaders 
leaving the conference agreed 
it had been a historic? one — the 
first which clearly demonstrated 
the triumph of the left, headed 
by Mr Arthur Scargill, the new 
president, after -a ' Id-year 
struggle for power. 

The old right wing majority 
on the executive. commanded by 


the former president Lord 
Gormley has crumbled -and 
split and presented only 
sporadic . dissent in the early 
stages of the conference. 

Its disarray was evident on 
the first day when Mr Sid 
Vincent, .the outspoken and 
colourful secretary of the 
Lancashire area, startled dele- 
gates by announcing that he had 
adopted the view towards the 
left of “if you can’t beat them 
join them." 

The momentum will be kept 
up when the executive meets 
next week to approve the pay 
package and to rouse opposi- 
tion to closures. Snowdown 
Colliery in Kent is the imme- 
diate issue, though Mr Scargill 
has said that two more large pits 
are earmarked for closure. 

However, the coal board has 
denied this and yeserday it also 
denied a report that Hatfield 
Colliery, in the Barnsley area 
was to dose; 

• The conference unanimously 
passed an emergency motion 
calling for immediate with- 
drawal of all Israeli forces 
from the Lebanon. 

• Ms Mompati the UK repre- 
sentative of the African 
National Congress old delegates 
that Souh African miners were 
the most exploited 


No English justice, 
closed-shop man told 

BY RAYMOND HUGHES, 1AW COURTS CORRESPONDENT 


A MAN who lost his job in 1977 
because he refused to join a 
closed shop union would not find 
justice in the English courts; 
Lord Denning said in the Court 
of Appeal yesterday! ■ • 

The only hope of compensa- 
tion for former Co-op milkman 
Mr Bums Taylor was to follow 
the path to the European Court 
of Human Rights successfully 
• trodden last year by three . 
former British Rail workers, 
said Lord Denning. 

Under -the law as it stood in 
1077, the sacking of Mr Taylor 
had been fair, and he could not 
recover compensation from Co- 
operative Retail Services. 

But that law— the 1974 and 
1976 Trade Union Acts — was in- 
consistent with the freedom of 
workers to join the union of 
. their choice, guaranteed by^the 
European Convention on Human 
Rights. ■ 

. “ The UK Government is res- 
ponsible for passing those Acts 
and should pay him compensa- 
tion.” said Lord .Denning, adding 
that he could see.no reason why 
the Co-op should have to com- 
pensate Mr Taylor, as .it had 
only done what it had been 
compelled to do by the unions 
with which it had signed a 
closed shop agreement. 

Mr Taylor could, like the 
British Rail workers, go to the 
Human Rights Court, where he 
might, in the long run, get com- 
pensation. 

"So. in the end, justice may 
be done. But not here," said 


Lord ‘Denning. 

Mr Taylor's appeal against 
rulings by an industrial tribunal 
and the Employment Appeal 
Tribunal that his dismiss al was 
fair, was dismissed. 

He was one of a number of 
Co-op. dairy workers in Worc- 
ester . who, in 19/a, resigned - 
from the Union of Shop, Distri- 
butive and Allied Workers, with 
which they had become dis- 
satisfied. They later joined the 
Transport and General Work- 
ers Union, at a time when the 
two unions, had just signed the 
closed shop agreement 
USD AW complained to the 
TUC disputes committee that, 
in accepting the Co-opworkers 
as members, the TGWU had 
broken: the Bridlington Prin- 
ciples stopping one. union 
“poaching” another's mem- 
bers. 

On the instructions of the- 
committee, the TGWU excluded . 
the Co-op workers, all but 10 
of whom then joined USDAW. 
Mr Taylor, who was one of the 
10. was dismissed by the Co-op. 

An industrial tribunal ref- 
lected bis unfaiy dismissal claim 
on the ground that the practice 
at 'the time had been for Co-op 
employees in Mr Taylor's cate- 
gory to be members- 
The appeal tribunal took the 
same view, said Lord Denning, 
He added that Mr Taylor bad. 
however, been subjected to a- 
degree of compulsion that was 
contrary to the freedom guaran- 
teed by the Human Rights coor 
vention. 


Hospital strike on sacking 


BY IVO DAWNAY, LABOUR STAFF 


SEVERAL HUNDRED hospital 
ancillary staff in Liverpool took 
all-out strike action yesterday 
afler.a union official was dis- 
missed for allegedly assaulting 
a colleague who opposses the 
health - service pay dispute 

The stoppage left four hospi- 
tals without emergency cover 
and hit services'll three others. 

Spontaneous . walkouts began 
at the Alder Hey, Newsham and 
Mill Road hospitals on Wednes- 
day when Mrs Bella Tracey, a 
branch secretary of the General 
and Municipal Workers' Union, 


was sacked for an alleged 
assault on a. cleaner at the. 
beginning of last month. 

But a meeting of officials 
representing all the main health 
unions in Liverpool yesterday 
called on National Health Ser- 
vice staff to return to work to 
await an app 

• The Association of Scientific. 
Technical and Managerial . Staffs 
last night rejected an improved 
management offer of between . 
5^ and 5B per cent for 16,000 ; 
NHS medical laboratory staff. i 



World leaders in paging systems 

Good years for Multitone 


1975 First radio pagers for 
British Telecom's London service 

1980 £1M order for radio 
pagers at Moscow Olympics 

1981 Launch of digital direct 

sjX’ech intercom 

1982 British Teiecotn order 
for 40.000 pagers 

The best of British from 
MuKitone . 

Muiiiiunc lilirvtruuir-s P.LC. 

ti-2fi UnderuKxxl Slice!. I nrtdnn N1 7JT. 

Telephone: 01-253 7611 Telex: 2665 KS 


By Our Labour Correspondent 

MR ALAN SAPPER, TUC chmr- 
man and general secretary of 
ACTT, the television techni- 
cians’ union, yesterday warned 
-the Labour Party and union 
leaders that an agreement on 
incomes was no part of TUC 
policy. 

He told the National Union of 
Mineworkers’ annual confer- 
ence, in Inverness, that the 
TUC was committed to free 
collective bargaining. No 
future Labour Government 
should try to control wages. 

Condemning the working of the 
“ social contract ” . under the 
previous Labour administra- 
tion, be said. There would be 
“ no return to the social con- 
trick.” 

Mr Sapper's interpretation of 
policy will be controversaL i 
It rests on last year’s Con- ! 
gress resolution supporting 1 
free collective .bargaining, and | 
opposing “any wages policy, 
pay norm or statutory re- 
straints.” 

However, Mr Len Murray, TUC 
general secretary, argued then 
that the decision had .to be 
token with other motions and 
with a report from the TUC- 
Labour Party liaison commit- 
tee Economic Issues Facing 
the Next Labour Government, 


TRADE UNIONS in the water 
industry yesterday accused the 
Government of trying to break 
their bargaining power at 
national level by its proposed 
abolition of the National Water 
Council. 

Mr Tom King, Local Govern- 
ment Minister, announced the 
abolition of the council, which 
co-ordinates the activities of 10 
autonomous water authorities in 
England and Wales, on 
.Wednesday, 

The council has statutory 
responsibility for the industiy's 
longstanding national negotiat- 
ing machinery on terms and 
conditions of more than 70,000 
workers end staff. 


This will end on the day the 
council’s functions cease, which 
is expected to be September 30 
1983. Collective agreements will 
cease to operate on that date; 
although employees will retain 
their right to existing rates of 
pay and conditions. 

Negotiations would then be 
conducted purely at regional 
level, unless the authorities 
decided they wished to recom- 
mend that a future association 
of water authorities becomes the 
national negotiating body. At 
present, this seems unlikely. 

The 30,000 'manual workers in 
tiie water industry used to be a 
insignificant group, but in 
recent years they have come to 


be regarded as workers -with 
potential disruptive power at 
national level not far short of 
the miners. 

So far there has been no 
official national industrial 
action, but the possibility of it 
has crept nearer and there has 
■been sporadic unofficial action. 

Mr Eddie Newall, national 
officer of the General and 
Municipal Workers’ Union and 
secretary of the manual unions, 
said last night: “ This is another 
attempt by the Government to 
disrupt the bargaining ability 
of tihe unions at national level.” 

He said he could come to no 
other conclusion after examin- 
ing tile Government's stated 


reasons for planning to abolish 
the council. 

Mr King's main argument 
was that while the National 
Water Council bas played a 
valuable role when. It was set 
up in 1974. as part of the indus- 
try's reorganisation. Regional 
authorities are now capable of 
carrying out their job without 
an additional central body. 

Abolishing the statutory 
national negotiations without 
proposing statutory arrange- 
ments to replace them was " a 
recipe for chaos.” Regional 
negotiations would result in i 
regions being played off against 
each other. 

Men and Matters. Page 18 


Liverpool dockers disrupt cargo handling 


BY BRIAN GROOM, LABOUR STAFF 


THE LOSS-MAKING Port of 
Liverpool was disrupted yes- 
terday by an unofficial strike of 
1,100 dockers employed by the 
main operator, the Mersey 
Docks and Harbour Company. 

Cargo-handling was halted on 
IT ocean-going freighters. Work 
continued in some parts of the 
company’s operation, and at 
other stevedoring companies. 
About half-a-dozen ships, 
mainly coastal vessels, were un- 
affected. 

Fort shop stewards will 
recommend a return-to-work at 
a mass meeting on Sunday. The 
docks company hopes the strike 


will be limited to two working 
days. . 

A longer stoppage would be a 
severe blow to Mersey Docks, 
which lost £7.5m last year. The 
Government has warned it will 
not continue to grant aid after 
the end of this year unless the 
port breaks even. 

The strike followed the com- 
pany’s measures to achieve 
financial stability — the ending 
of cargo-handling at Birken- 
head. 

About 225 Birkenhead 
dockers refused to cross the 
river to work In Liverpool this 
week, because Mersey Docks 


rejected their claim for £1,500 
compensation and a £900 a year 
travel allowance. The company 
offered a travel concession only 
for the first month. 

The dispute began to spread 
when Liverpool dockers refused 
to cover for striking Birkenhead 
colleagues. 

David Goodhart adds: The 
Haven ports — Felixstowe. Har- 
wich and Ipswich— have all been 
hit by labour disputes. The 
ports have enjoyed considerable 
growth in recent years because 
of their normally good labour 
relations. 

Felixstowe's 1,200-strong 


branch of the Transport and 
General Workers’ Union has 
imposed an overtime ban after 
rejecting an 8.5 per cent offer 
from the Felixstowe Dock and 
Railway Company — a subsidiary 
of European Ferries. The over- 
time ban will hit aid freight 
movement at the week-end. 

Caxgo handling at Ipswich has 
been halted until Monday by a 
strike of 130 shed men over 
bonus payments. 

The dispute at Harwich over ; 
proposed wage cuts, which 
began last Thursday, continued 
to stop the movement of aU pas- 
senger ferries and freight liners. 


Barclays 
confident of 
Saturday 
volunteers 

By Our Labour Staff 

BARCLAYS BANK hopes to 
avert the threat of industrial 
action by its biggest union by 
showing that it has been 
approached by enough volun- 
teers to press ahead with itsj 
l planned opening of _ 466 
branches on Saturday mornings. 

Today the bank will make the 
first foimal count of responses 
to its appeal for volunteers. 

! Eighty per cent of Barclays' 33 
regions have reported that suffi; 
cient numbers of staff are 
volunteering. 

Next Tuesday the genera) 
committee of Barclays Group 
Staff Union meets to consider 
a ballot on industrial action on 
the issue. The bank clearly 
hopes the union will draw back 
from such a decision if it sees 

the bank obtaining sufficient 
volunteers. 

The union has opposed 
strongly, however, and is urging 
members not to volunteer before 
Tuesday's meeting. 

Barclays acknowledges it has 
had insufficient volunteers from 
some areas, particularly some 
major conurbations where staff 
would have to travel a long dis- 
tance. It says, however, there 
is still time before September 
11, when the Saturday plan is 
to be extended nation-wide. 



“f ■*>•/* 

t - ’rn xmv m j^ fTfL 4 


The dear way forward. 


The railways axe in terrible danger: 
Unless we resolve the problems immediately the 
consequences for every railway man and woman 
will be grave. 

British Rail is at the point where it 
needs commitment to change and not just 
commitment to talk about change. 

Improvements in productivity are vital 
to the future of the railway. Without them we 
cannot hope to secure the investment to build 
tite modem railway which our customers and 
taxpayers are entitled to. 

The introduction of flexible rostering is 
a relatively small but significant step. In is the key 
to productivity gains which will be worth over 
£40mayeai: 

Endless delay 

ASLEF has been given ample oppor- 
tunity to talLThose productivity gains were 
discussed as long ago as 1979. Almost a year ago, 


mulb'bne 


Railway StatfNational Tribunal chaired by 
Lord McCarthy argued that flexible rosiering is 
essential for a more efficient railway 

The Board has patiently tried to negoti- . 
ate. It was prepared to consider the introduction 
of flexible rostering over only part of the system. 

At the same time it was prepared to explore ideas 
to achieve economies developed by ASLEF 
themselves. 

Then a week of silence, followed by ’ 
iheir call for a strike. Now they're saying letfs have 
talks about talks again. 


This won’t do -we’ve had over two 
years of it Our markets are shaken and confidence 
in BR’s future is shaken. 

The record of ASLEFs Executive this 
year is one of going back on promises made. They 
have used every delaying tactic to avoid the issue. 
This time they cannot be allowed to fudge. For the 
sake of our drivers, they must deliver 

A normal working method 

A variable working day is widely used 
throughout British industry. It is die normal 
working method for train crews in most European 
countries. It has been accepted by two of the three 
railway unions and is working well. In February 
this year the independent conciliation service, 
ACAS, backed by the full authority of the TUC, 
re-established ASLEFs commitment to pro- 
ductivity. Flexible rostering has been endorsed by 
the ultimate body of the negotiating machinery to . 
which ASLEF adheres so tenaaously-the 
Railway Staff National Tribunal. Within hours, 
ASLEF rejected the Tribunal’s findings. 

Improvements for drivers 

Furthermore, flexible rostering offers 
substantial improvements to the drivers them- 
selves - a shorter working week resulting in more 
rest days and fewer unsocial starting hours. With 
NUR the rosters have been negotiated locally and 
a high degree of flexibility has been achieved. Last 
week the NUR Annual Conference gave it full 
backing. With ASLEF even where local staff have 
been prepared to consider the new workings, they 
have been ordered by their Executive not to talk 
about them. 


The real threat to jobs 

No-one will be forced to leave the rail- 
way by flexible rostering. The only immediate 
threat to jobs is the strike itself. But if the strike 
goes on, more and more jobs are threatened 

A clear commitment to change 

The Board will implement flexible 
rostering. 31 depots were posted with new rosters 
this week: next week there will be 70. To create 
the modem railway that every sensible person 
wants, we need a commitment to change through- 
out our industry, and a willingness to cany it out. 

Flexible rostering is the essential first 
step. It is not unreasonable. It has the backing of ■ 
the Railway Staff National Tribunal and Lord 
McCarthy, the NUR, the TSS A and the public. 

It is woriong well for guards. It will work very well 
for ASLEF members and their famines. 

This week has damaged the raflway- 
and the prospects of railway men and women. We 
have run services with a limited number of drivers. 
In commonsense, this cannot go on muchlongeL 

Time is critical now-day by day.Unless 
ASLEF calls off its strike immediately or drivers 
return to work, there will be unavoidable and grave 
consequences for all who work on the railway. 



.-.j 


10 


Financial Times Friday July 0 3L9S2- 




COMPANY NOTICES 


CHARTER CONSOLIDATED P.L.C. 
NOTICE OF ANNUAL GENERAL MEETING ' 


NOTICE IS HEREBY GIVENT that the seventeenth annual 
general meeting of members of Charter Consolidated P.L.C. will 
be held in the Caxton suite at the London International Press 
Centre. 76 Shoe Lane. London EC4A 3jB (New Street Square 
entrance), on Tuesday 10 August 1982 at .12 noon for the following 
purposes: 


1. 


To consider the accounts and the report of the directors for 
the year to 3 1 March 1 902. 


2. To declare a final dividend. 


3. 


To reappoint as directors Mr G. W. Mackworth-Young. Mr A. E. 
Oppenhcimer. Mr N. F. Oppenheimer, Mr J. O. Hambno, Mr 
M. B. Hofmeyr, and Mr G. W. H. Relly. 


4. To reappoint Coopers & Ly brand as auditors and authorize the 
board to fix their remuneration. 


5. To consider the following resolution which will be proposed 
as a special resolution: 


(B) 


I A) That the regulations contained in the print of the articles 
of association submitted to the meeting and for the 
purpose of identification signed by the chairman be 
approved and adopted as the articles of association of 
the company in substitution for and to the exclusion of 
all the existing articles of association. 

That the following amendments to the share incentive 
scheme adopted by special resolution of the company in 
general meeting on )4 July 1970, as subsequently 
amended, be and are hereby approved to the intent that 
such approval shall in so far as requisite operate by way 
of alteration of che articles of association of the company 
adopted pursuant to paragraph (A) of this resolution: 
(i) in clause 5(ii) and clause 1 J(a)(ii), the deletion of 
** Articles 71 and 72 of: 1 ’ 

(ii) in clause 10. the deletion- of “Articles 21 to 26 
(inclusive)” and the substitution therefor of 

“ Articles 20 to 25 ( inclusive);" 

(iii) in clause 11(c), the deletion of “Article 132 of the 
Company's Articles of Association as altered on the 
14th July. 1970." and che substitution therefor of 
** Article 129 of the Company's Articles of 
Association:" 

(iv) in clause 12(a), the deletion of “Articles 38 to 43 

(inclusive)" and the substitution therefor of 

“Articles 26 to 30 (inclusive) and Article 34:" 

(v) in clause 12(c), the deletion of “Articles 18 to 20 

I inclusive)" and rhe substitution therefor of 

“ Articles 32 to 34 ( inclusive ). ’’ ’ 


6 . 


To consider the following resolution which will be proposed as 
an ordinary resolution: 

‘Thar, in accordance with paragraph 20(c) of the schedule to 
the trust deed dated 17 August 1981 and made between the 
company and various subsidiary companies and Abercom 
Nominees Limited as trustees constituting che company's profit 
sharing scheme, the said trust deed be hereby amended by the 
deletion of the definition of " Qualifying Employee " in para- 
graph I of the schedule thereto and the substitution therefor 
of the following: 

“Any person who, as at the related Appropriation Date, 

(a) is an Employee, and 

(b) has for -periods amounting in aggregate to not less than 
five years been 

(i) an Employee, and/or 

(ii) an employee (including a director holding a salaried 
employment or office) of any subsidiary (within the 
meaning of section 154 of the Companies Act 1948) 
of che Company, and/or 

(iii) an employee (including a director holding a salaried 
'employment or office) of any company which is or has 
been associated with the Company and who is offered 
participation in this Scheme by a decision of the 
Directors. " ' 

A member entitled to attend and vote at the meeting is entitled 
to appoint one or more proxies to accend and, on a poll, to vote 
instead of him. A proxy need not be a member of the company. 


40 Holborn Viaduct 
London EC IP 1AJ 
S July 1982 


by order of che board 
D. S. BOOTH 
. secretary 


NOTES 


1. Holders of share warrants to bearer who wish to attend in 
person or by proxy or to vote at the meeting must comply 
with the relevant conditions governing share warrants to bearer. 


2. To be valid the form of proxy must reach the company at PO 
Box 102, Charter House. Park Street. Ashford, Kent TN23 2BR, 
not less than 48 hours before the meeting. 


3. There are no directors' service contracts required by The Stock 
Exchange to be made available for inspection at the meeting. 


MALAYSIA MINING CORPORATION BERHAD 
(Incorporated in Malayalal 

NOTICE OF MEETING 


NOTICE >5 HEREBY GIVEN that the sixth annual eeneral meeting of member* 
of MjUvsii Minmo Corporation Berhad will be held at me conference room. 
Pernai Charter Management Sdn Berhad. Wlima Bungs Raya. 152. jalan 
Amuang. Kuala Lumpur. Malania on Saturday. Slit July. 19B2 at 10.00 am 
fnr the nuiDMc at considering and. If thought fit. passing the following 
reiohit.ans- 


1. 


"Thar the rcu>ect<>e balance yhecti and profit and lo*i account* 
together with the note* thereon of the company and of the group at 
31it January. I9B.' and of the results of the company and ot the 
group lor (he period ended on that date, together with the Statement 
m source and application or fund* ot the group for the period ended 
31*1 January 1982 and the report of me director, and auditors be 
and aie heron, lecnvad an., adopted and the Aral dividend of 10 sen 
per 10 sen share, less lax at 40”,.. be and Is hereby approved and 
declare- payable on 5ih August. : 982 to the member* of the company 
reglslerrd at the close of builnes* on ifith July. 1BB2.” 


'That Mr j. W. Ow*tan. who retire* Py rotation, be and is hereby 
rc-piiretod a director or the company.-* 


"That Y. M Rata Badroi Anmad. who retires by rotation, be and Ii 
hereby re-elected a director of the company." 


' Triil Messrs Peat. Marwick. Mitchell A Co., who *rr eligible and 
harp given then consent for re-appointment, be and are hereby 
re-aDi>o*nled che company'* auditors for the period until the conclusion 
of the ne»i annual general meeting and that the remuneration to be 
Belli to them be Hard by the board." 


By order or the Board 
FAISAL 51 RAJ 
. Secretary 


Kuat* Lumpur 
9!h Jul,. 19B2 
Note*: 


A member entitled to attend and vote at the meeting Is entitled to 
appoint one or more proxies to attend and vote In his stead. A proxy 
nerd not he a member of the company. 


(Hi Copies of director*' contracts of service are available Ibr Inspection at 
IS Jalan Tangsi Kuala Lumpur on any weekday (except Sann-davii 
from 9th Julv. 1982 CO 31 at Jul*. 1982 during usual business hour* 
iis will Uc available .nr inspection at the conference room. Pprnas 
Charter Management Sdn Berhad. Wlima Bunga Raya, 152. Jalan 
Amnang. Koala Lumaur prior to and until the conclusion of the annual 
general meeting. 


Tim idi in at proiw to he valid must roach the Malavstan Registrar*' 
oHKe at Lot No 6.09. 6th Floor. Wisma Central, jalan Am rang. Kuala 
Lumpur 04-08, Malaysia or the United Kingdom Registrars’ odlcr at 
Charter House. Part Street. Ashrord. Kant TN24 BStJ.. not less than 
48 hours before Ihc meeting. 


CLASSIFIED ADVERTISEMENT RATES 


Premium positions available 
(Minimum size. 30 column ems) 
£6.00 per single column cm extra 


For further details write to: 

Oassified Advertisement Manager 
Financial Times, 10 Cannon Street, EC4P 4BY 


FUJITSU LIMITED 
Notice to Holders of 
European Depositary Receipts 
<** EDRj") 

NOTICE IS NEREBV GIVEN to holders 
Of EDRs lilac Fujitsu Limited said a 
dividend of YS.2S gross per snare on 
30tf> June 1982 to shareholders on 
the Company's register at (he close of 
business on 31*t March 1982. This 
dividend has been converted to US 
Dollars and amounts to USS 12.51 
gross per EDR. 


Accordingly.- > Klelnwort. Benson 
Limited as Depositary informs holders 
01 EDRs that they should Claim their 
dividends bv presenting Coupon No. 1 
on or after izth Julv 1962 at la! 
the office at the Depositary. Kie.n- 
v-Ort. Benson Limited. 20 FoiKPurch 
Street. London EC3F 3DB. gr <b! the 
offices of Iho Agents. Morgan 
Guaranty Trust Company of . New 
York. Avenue dec Arts 3S. 1040 Brus- 
sels or Banoue Internationale a 
Luxembourg -S.A., 2 Boulevard Royal, 
Luxembourg. 

Coupons must be left for three dear 
business days for exam I nation, and 
■hay be presented on qnv weekday 
(Saturday and public holidays ex- 
cepted) during normal business hours. 
Japanese withholding tax at -the rate 
of 20 per cent wilt oe deducted from 
tho gross value of all Olvlaend* paid 
unless the EDR holder lodge*, m a 
form acceptable to the Depositary, an 
affidavit of residence In a country hav- 
ing a tax treaty or agreement with 
Japan providing for a lower rate or 
withholding tax. In which case such 
fOwcr rate will be apofted- 
The difference between the amount of 
withholding tax so deducted and the 
standard rate of Income tax payable 
In the United Kingdom will also be 
deducted from all dividends paid In 
the United Kingdom unless holders of 
EDRs furnish the Depositary with me 
usual affidavits of non-residence m 
the United Kingdom. 

KLEIN WORT. BENSON LIMITED 
Depositary 

London 

8th July 19B2 


TEXAS GULF CANADA LTD./ 
KIDD CREEK MINE5 LTD. 


*25.000.000 (Canadian! B>:% Notes 
due 1»-32 

J25.O00.0OO (Canadian! 10% 
Debentures due 1986 


NOTICE TO HOLDERS 


NOTICE IS HEREBY GIVEN to che 
holders of the 9H% Note* due 1982 
and Che 10% Debenture* due 1986 
■the ” Securities "i issued by Texasgulf 
Canada Ltd. (the “ Issuer "• Hut: 

1. The name of the Issuer has been 
changed from Texatgulf Canada Ltd. 
Co Kidd Creek Mines Ltd. 

2. The Securities will remain listed on 
the Luxembourg Stock Exchange 
and subseouent notices to the 
holder* thereof win be published 
under the designation " Tcxasgulf 
Canada Ltd.-Kidd Creek Mines 
Ltd." 

3. The outstanding Securities will 
neither be stamped with the new 
name of the Issuer nor exchanged 
for new securities. 

4. Certified copies of the Articles of 
Amendment changing the name of 


the Issuer have been lodged with 
the Luxembourg Stock Exchange. 


■July 

Toro 


9th. 19B2 
'oronta. 


R. A. WILLOUGHBY. 

Secretary. 


JAMES BEATTIE PLC 


NOTICE IS HEREBY GIVEN that trie 6% 
Preference Share TRANSFER BOOKS of 
the Company will be closed from the 
24th to the 31st July. 1982. both dates 
Inclusive. 

By Order of the Board. 

G. T. LOWNDES. 

Secretary. 

71 -7B. Victoria S treat, 

Wolverhampton. 


PUBLIC NOTICES 


DONCASTER 

METROPOLITAN BOROUGH COUNCIL 
£8.500.000 Bill* (i 12 1.*. Issued Bth 
July 1982. Application* totalled 
£54.500.000. These are the only Bills 
outstanding. 


BIRMINGHAM COUNCIL BILLS 
El 3.50m 91 dav Bills Issued Bth July. 1982 
mature 7th October. 1BB2. Applications 
totalled £81 m. Minimum accepted price 
£96.95. Average rate of discount 12.23%. 
Total Bills outstanding £40. 25m. 


MIDDLESBROUGH BOROUGH COUNCIL 


£1.250.000 Bills issued 7th July 1982 
■1 12 15 64% due 6th October 1982. 


Total applications £7.500.000. No other 
Bills outstanding. 


PERSONAL 


IN LO VING 
MEMORY 


Ftaref tributes tads. Your regard (or 
« departed friend lives on It you 
make a donation in their name to 
Help the Aged's work — towards a 
Day Centre lor the lonely, medical 
treatment or research (or the old. 


or help tor the housebound Every 
old. 


C achieves a great deal (or the 
Please let us know the name you 
wiah (o commemorate. 


Send to: 

The Hon. Treasurer 
The Rt Hon. Lord Maybray-Kfng 
Help the Aged 

Room FT1NM, 32 Dover Street 
London W1A 2AP 


ART GALLERIES 


SKIPWORTH GALLERY. S. Parchment 
Street. Winchester. Tcf- 0962 2311. 
Renowned artists Salote Maritime England 
Year 1982 with a Marine Exhibition 
until July 20. 


WHITECHAPEL ART GALLERY. El. 377 
0107. Tube Aldgate East. To 20 Scot. 
SIR CHRISTOPHER WREN Sun.-Frl 
11-5 50. Thur*. until 7.50 IThars. 15'7 
5.151. cl. Sat. Admission £1 (SOp), free 
children . A Mondays 2-5.30. 


ARTEMIS FINE ARTS (UK) LIMITED, 
! IS. Duke Sb-eet. St. James's. W1. Exhl- 
1 billon Ot MASTER PRINTS AND DRAW- 
I INGS. Man.-FH. 10-5 until 23 rd July. 
Alia WHISTLE ETCHINGS at 6a. 
Mason's Yard. 


COLNAGHI. 14. Old Bond Street. W1. 

8 1.491 7408. DISCOVERIES FROM THE 
INQUECENTO until 7 August: and 

ITALIAN OLD MASTER DRAWING5 
until 10 July. Mon.-Frl. 10-6, SiL 10-1. 


LBFEVRE GALLERY. 30. Bruton St. W1 
01-493 1572 3 AN EXHIBITION OF 
IMPORTANT XIX AND XX CENTURY 
WORKS OF ART. Mon.-Fr). ig-S. Sals. 
10 - 1 . 


. PHILIP PANK: Mountains and Nudes. 

< exhibition of oil Minting* at Burgh House. 
New End Souire. Weil Walk, Hampstead. 


NWS. 25 Hi June-1 Bth July. Wednesday 
to Sunday. 12 noon to S pm. 


LUMLEY CAZALET. 24. Davies St. Wl, 
499 505B. JACQUES HNIZDOV5KY — 
Woodcuts and LI nocots. Until 23 July. 


5IR WINSTON CHURCHILL. Exhibition 
Of Paintings. Wayne Gallery. 17. Old 
Bond St.. Wl. - 01-629 4511. 



Per 

Single 

column 


line 

cm 


£ 

£ 

Commercial and Industrial Property 

s.no 

27.50 

Residential Property 

6 .DO 

20.00 

Appointments 

$.50 

29-00 

Business. Investment Opportunities 

8.50 

29.00 

Businesses for Sale/Wanted 

S.50 

' 29.00 ' 

Personal 

6.00 

20.00 

Motor Cars 

6.00 

20.00 

Hotels and Travel 

6.00 

20.00 

Contracts and Tenders 

S.00 

27.50 

Bonk Publishers 

— 

net 12.00 


ROYAL SOCIETY OF BRITISH ARTISTS 
at the Mall Galleries. The - Mall. SW1. 
Annual Exhbn. Dally (Inc Sun*.) 10-5. 
Till July 21st. Adm. 50p. 


CLUBS 


Eve has OBtfiv«d the oilier* because of a 
bailey of fair plav and value for. money. 
Supper from 1o-S.3o am. Disco and too 


Hoots hows. 1 85, Regent SL 01-734 


BUILDING 
SOCIETY RATES 


Every Saturday the 
Financial Times 
publishes a table 
giving details of 

Boiiding Society 

Rates 
on offer 
to the public 


For 


her details 
e ring: 
01*248 8000 
Ext 3606 


UK NEWS - PARLIAMENT and POLITICS 


Dublin’s 
interest 
in Ulster 
recognised 


Falklands inquiry terms approved 


BY IVOR OWEN 


By Margaret Van Hartew. 

Political Staff 

THE GOVERNMENTS recog- 
nltion of the. Dublin Govern^; 
ment's right to a say In the-, 
affairs of Northern Ireland 1 , 
was yesterday given its 
clearest expression so far in 
die House of Lords by Lord 
Cowrie. Minister of State for 
Northern Ireland. 

Introducing a dehate on the 
Second Reading of the 
Northern Ireland Devolution 
Bill, he said It was “ fantasy ” 
to maintain that the republic 
had no proper concern with 
Northern Ireland affairs. 

The republic's internal 
security and its judicial 
system were affected hy the 
Iroubies in Northern Ireland* 
and the cost to the republic 
of the present “ excellent ” co- 
operation between police in 
the North and Sonth was 
huge.” 

“ Southern Irish politics, no 
less than Northern Irish poli- 
tics, hinge on the 1921 parti- 
tion settlement," he said.- 
“ Then there is the very physi- 
cal presence as well as the 
political issue of the land 
border. Above all there is the 
inalienable fact that a third 
of the population of Northern 
Ireland consider themselves 
Irish.” 

The tone of Lord Gowrie's 
speech Indicates a sense of 
relief on the part of the 
government that the Bill has 
cleared all hurdles in the 
Commons, In the face of deter- 
mined minority opposition, 
ami possibly a sense of regret 
that the Bill could not have 
gone further towards meeting 
the demands of the province^ 
nationalist minority. 

In order to isolate the Bill's 
pro-Unionist opponents in the 
Commons, the Government 
refrained from going as far ns 
ft earlier seemed prepared to 
do in conceding nationalist- 
oriented amendments. 

The indications are that the 
Government will now make a 
concerted effort to woo mem- , 
hers' of Northern Ireland’s 
Social Democratic and Labour 
Party, the only major 
nationalist party In the pro- 
vince which has consistently- 
stood out against the IRA. 
The SDP is strongly opposed 
to the devolution proposals. 

Among all the Northern 
Ireland Ministers. Lord 
Gowrie is generally recog- 
nised as being the most 
sympathetic to the nationalist 
cause and he was persom^lj 
responsible for most of the 
passages In the White Papcy 
on Northern Ireland speclfl- • 
eally recognising the right of 
Northern Ireland citizens to 
be Irish and -to seek to. 
express their Irish identity In ■ 
political activity. 

Much of Lord Gowrie’s-.. 
speech yesterday appeared 
designed to reassure the 
nationalists of the Govern- 
ment’s sympathetic appropla-... 
tion of their case. The 
Government had gone much .i 
further than anv previous ■ 
Government to recognise the 
legitimacy of the political 
tradition that saplred to Irish 
unity, he said. 

However he stressed that 
while the Government would 
be haunv to ser the creation 
of a nerii amenta rv Her to tht 
Anvio-Irlsh Council, there 
could be no oueafion of 
cnerelnn or even Rncnuras'e- 
rm*Tlt. Thp An«rlo-Iri«t)| institu- 
tion* uoiiaht bv th»» nationa- 
list* miabt well not come into 
hein® ’nsTnAdlately. or be used 
Imnmd iately. 

“ Ton cannot Torce the pace. 
Anglo-Irish relations can roll 
forward or roll back. At the 
moment, and I very ranch 
regret this, they are not as 
close as they might he and 
should he." 


MPs last night approved the 
composition and terms of 
reference of the inquiry which 
is lo investigate . the part 
played by '. Ministers, -the 
intelligence services and other. 
. officials-in the events leading up ' 
to- Argentina's invasion of the 
Falkland -Islands. - 
ThePrijne Minister reaffirmed 
■ her hope that Lord Franks' who 
■is, 10 preside over the inquiry, 
and his colleagues would be able 
■to complete r their work within 
six'- months. 

Her assertion that the mem- 
bership of the inquiry gave the 
best' possible assurance that the 
review would be carried out 
with independence and integrity 
was backed by Mr Michael Foot, 
the Labour leader. Mr Roy 
Jenkins, leader of the SDP. and 
two former Prime Ministers, Mr 
Janies Callaghan and Mr 
Edward Heath. 

The strongest challenge to 
the Prime Minister in the 
course of a three-hour debate 
came from Mr Callaghan when 
he renewed his earlier charges 
that had the Government made 
the right judgments about the 
deployment of Royal Nwv ships 
Argentine forces would have 
never invaded rhe islands. 

To cheers from the Labour 
benches he declared: '* Until 
ray dying day I shall never get 
out of my head rhe belief that 
this was an unnecessary war. 
“I hold the Prime Minister re- 
sponsible for what took- place.” 


Mr Callaghan also hit out at 
Mrs Thatcher over her "sneer” 
that, had a Labour Government 
been in power, it would not 
have been prepared to fire a 
sbpt to repel the Argentine in- 
vaders. “Let me tell her we 
'would not have needed to,” he 
stormed. 

. Mr Foot used a lighter touch 
to discomfort rhe Prime Minis- 
ter. He recalled the experience 
of . the hero of a Victor Hugo 
noyel, whose involvement in a 
naval battle had resulted in his 
being first decorated and then 
shot. 

But Mr Denis Healey. 
Labour's shadow Foreign Secre- 
tary. left the Prime Minister in 
no ‘doubt that sbe would be 
expected to resign if the inquiry 
showed that the government 
had been seriously at fault in 
failing to deter Argentina from 
invading the Islands. 

He said the Prime Minister 
would be expected to show the 
same courage in accepting the 
implications of such a judgment 
as that exhibited by Lord 
Carrington when he resigned as 
Foreign Secretary' in April. 

Mr Healey contended that 
General Galtieri. the head of 
the Argentine junta had made 
it clear well in advance that 
Argentina would be prepared to 
use force to gain possession of 
the Islands if it seemed likely 
that their forces would not 
encounter serious resistance. 

Mr Healey maintained that 



all the “ signals ” which Argen- 
tina’s leaders had detected from 
the actions of the British 
Government had led them lo 
decide that the invasion was an 
acceptable risk. 

Mr Heath made it clear that 
his clash with Mrs Thatcher 
over the need to secure . the 
permission, of the Prime Minis- 
ters of former Administrations 
before access could he gained 
to their papers by successor 
Governments had been settled 
on his terms. 

He stressed that it was not 
a matter of courtesy but of con- 


stitutional practice which had 
been established since 1917 
when Cabinet minutes were 
first introduced. “Ihope we 
have now had this fully con- 
, firmed.” 

Mn Thatcher announced that 
foVM* former Prime. Ministers, 
Mr Macmillan; Lord Home. Sir 
Harold Wilson and Mr Cal- 
laghan, as well as Mr Heath 
had agreed that the committee 
should have access to the rele- 
vant documents of their 
Adminisi rations subject to the 
conventions - which had been 
observed in the past. 

The Prime Minister told MPs 
that while the committee itself 
would determine its own proce- 
dure it had been sugegsred to 
Lord Franks that should 
criticism be directed at any in- 
dividual the person concerned 
should he- given details and an 
opportunity to make represen- 
tations orally or in writing- 

Mrs Thatcher made it clear 
That the Government would 
reserve the right to prevent 
publication of sections of the 
report relating to the security 
services. But she envisaged 
that there would be only “ very 
rare deletions.” 

Mr Humphrey Atkin* 1C 
Spcitborae). one or the Foreign 
Office Ministers who resigned 
with Lord Carrington, welcomed 
the inquiry. But he argued that 
it inevitably suffered from a 
flaw — it could not question Gen 
Galtieri. 


Labour’s 
local poll 
share falls 


Strike-breaking drivers 
praised by Thatcher 

BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT 


Task force 
dead to 


By Our Polltial Editor 

LABOUR'S share of the vote 
in local government by-eiec- 
tions during June was the low- 
est for more than a year. 

According to estimates com- 
piled by Labour Party support- 
ers. the party took only 23.1 
per cent of the total vote in the 
30 wards contested during June. 
This compares with 43 2 per 
cent for the Conservatives and 
28 per cent for the SDP/Liberal 
Alliance which is considerably 
less than last winter. 

It is impossible to tell 
whether these wards are repre- 
sentative of the national trend. 
But on the basis of previous in- 
cumbency the Conservatives 
wone nine seats and lost four, 
while Labour won two seats and 
lost six. The gains and losses 
of the Alliance cancelled each 
other out while others lost one 
seat 

In the 24 wards where all 
three main parties stood to- 
gether the Labour share of the 
vote was 22.4 per cent, com- 
pared' with 46.7 per cent for 
the Conservatives and 28 per 
cent for the Alliance. 

Last month’s figures indicate 
that the. Falklands factor xpay 
have- benefited . the. Conserva- 
tives while Labour appears, to 
be suffering from its internal 
divisions. 

There are naturally sharp 
variations in the results from 
month to month, but. the' trend 
since - the - beginning of , this 
year shows that the Alliance 
share has dropped -from over 
40 per cent to around 30 per 
cent or less, while the Laboar 
share has slipped back from be- 
tween 26 -28 per cent to 25 
per cent or less. 

The main beneficiaries have 
been the Conservatives whose 
share of the vote has risen from 
25-27 per cent range to well 
over a third most recently and 
up to two fifths last month. 

Elinor Goodman adds : The 
register of Labour groups, 
approved by the last meeting of 
the party's national executive 
committee as a way of dealing 
with Militant Tendency, has now 
been set up. An advertisement 
in this week's issue of Labour 
Weekly invites all non-affiliated 
groups of Labour- Party mem- 
bers to apply immediately for 
registration. 


TRAIN drivers who are con- 
tinuing to work in defiance of 
the- strike decision of the Aslef 
executive were congratulated by 
the Prime Minister yesterday. 
She made dear that she hoped 
more drivers would follow their 
example. 

*' They are doing a far better 
service for themselves and the 
railways than those out on 
strike." she told the Commons. 

Once again she came in for 
strong criticism from Labour 
back benchers but rejected 
demands that the Government 
should intervene to solve Hie 
dispute. 

Her endorsement of those 
who have continued to work 
came after Mr Edward Taylor 
(Con, Southend East) told her 
he had travelled from Southend 
to London on a train fitted with 
hundreds of passengers despite 
the dispute. 

Mrs Thatcher commented: “ £ 
would like to offer encourage- 
ment and congratulations to 
those many Aslef drivers who 
are working and carrying out 
their duties to the travelling 
public." • 

The Prime Minister empha- 
sised that the responsibility for 
running the railways ■ rested 
squirely with the BR board. 
She believed' that the. majority 
of railwaymen were “ ready and 
willing " to carry on working. 
"I hope that will very soon 
apply to Aslef as it does to the 
NUR," she added. 

Questioned, by Mr Derek' 
Foster (Lab, Bishop Auckland), 


Mrs Thatcher insisted that the 
responsibility for running the 
system for the benefit of the 
public was vested in the board. 
“ It is For them to run it under 
the terms with which they are 
charged," site said. 

But according lo Mr Foster, 
she had betrayed the national 
interest by refusing to bring the 
parties together. “If the board 
is looking after the railways' 
interest and Aslef rightly, is 
looking after its members 
interest, who is looking after 
the country's interests?" he de- 
mended, “Is that not your job?" 

The Prime Minister was also 
criticised by Mr Michael 
Mcachcr (Lab Oldham West) 
who claimed the Government 
was giving unquestioning sup- 
port to the board. Mr Meaeher 
said that the introduction nf 
flexible, rostering would accord- 
ing to BR’s own figures, save 
less than £500,000 this year and 
only £9m over the next three 
years. In contrast, he said, the 
dispute was costing £9m a day. 

"This is a ludicrously false 
economy and suggests that your 
real purpose in this dispute is 
to break Aslef,’’ Mr Meaeher 
declared. - 

• The. Prime Minister rejected- 
this accusationjahd said: 'Those 
charged with the respoiisibility,- 
of running the' railways should 
be allowed to get on with it.” 

She told, the opposition that 
the Conservatives did not .have 
the arrogance' to assume that 
they- /could - run the ’ business 
bettfer. 


be returned 


Heseltine defends blacks’ 
record on loan payments 


BY USA WOOD 


THE BLACK community’s 
ability to pay back loans Is as 
good as that of the white com- 
raur-ity. according to research 
conducted by the Abbey 
National Building Society, Mr 
Michael Heseltine. the Environ- 
ment Secretary, told, a confrence 
of black' businessmen yesterday: ■ 

Addressing a conference in 
London, jointly sponsored by the 
UK/Caribbean “Chamber of 
Commerce and the. Commission 
for Racial Equality,- the Minister 
said there was a great deal of 


misconception about blacks pay- 
ing back loans. 

But the experience' of Abbey 
National was that trading with 
the black community was jnst 
the same as trading with whites. 

Mr 'tfdhn Maegregor, Under 
-Secretary of State, Department 
of Industry, ' congratulated the 
major ' clearing- banks, which 
were -all represented at- the con- 
ference, for setting :up special 
units to deal with smair busi-' 
nesses and .in particular black 
-business. "■ '. : 


MRS THATCHER announced 
that the Government would 
bring home the bodies of British 
servicemen buried In the Falk- 
lands. if their families wished 
it. 

She also announced an. imme- 
diate investigation into how this 
decision appeared « newspapers 
before she told MPs in the 
Commons. 

The decision means that 
servicemen who died and were 
buried temporarily in hillside 
graves on the islands will he 
disinterred and brought home 
for reburial. But where .the 
families wish, the bodies will be 
reburied in the Commonwealth 
Wav Grave at Port Stanley. 

About 80 British servicemen 
iHP of the 255 who died in the 
battle for the Falkland® are 
buried in the islands. The rest 
died at sea or in the air. 

Mrs Thatcher told Mr George 
Robertson (Lab. Hamilton) in a 
Commons written reply: " After 
considering all aspects of this 
most difficult problem. Includ- 
ing tho practical difficulties 
involved, and . having read the 
letters I have received frum the 
next -rof kin of those killed and 
others, T have .decided that, 
1 where the next of kin wish, 
'arrangements will .be made for 
the return ter the United King- 
dom of the bodies of the fallen 
who have been given temporary 
burial on land in the Falkland 
Islands. 

. - Mrs Thatcher said that where 
next of . kin wished the bodies 
-to- remain -in the Falkland 
islands they" would be buried 
with all due ceremony at Port 
Stanley. 

“Arrangements will be made 
for close relatives to visit the 
graves if they so wish and 
similar arrangements will be 
made for dose relatives of those 
lost or buried at sea who wish 
to visit the Falkland Islands.” 

Mr'Robertson complained that 
he ha'd had to learn of Mrs 
Thatcher’s. decision through the 
Tress. “I will try to .find out 
precisely^ what has happened.” 
.the Prune Minister told 'Mm. 

•. The Queen . has approved a 
..South Atlantic campaign medal 
.for tfafl Fa 1 Wands Conflict 
Mrs /-Thatcher ' told .-the 
Commons ' -details': would, bfc dis- 
closed • : in. a ."White Paper 


MANDARIN INSTINCT FOR CONTINUITY 


Exploring the myths of Whitehall 


BY PETER RIDDELL, POLITICAL EDITOR 


WHITEHALL provides one of 
the most elusive subjects for an 
outsider to grasp, let alone 
explain fairly. The .alternative^ 
myths of a powerful civil ser- 
vice trying to steer politicians 
along a departmental and con- 
sensus path, or of advisers sub- 
servient to the lead of politi- 
cians, are both unconvincing. 

. The truth is more subtle, yet 
no more easy to pin down. . 
Various attempts have been, 
made' to fociis on where the ' 
power lies.. mainly from the poll? . 
ticians' viewpoint .(most enter- 
tainingly in Gerald Kaufman's ■ 
“How to be a Minister"). But 
there have been, few public in- 
sights. from civil servants, who# ■ 
apart from diplomats or highly 
unusual officials like Sir Leo 
PliatzfeL, have been reluctant to 
write their memoirs. A few 
assiduous journalists interested 
in this field have had to work 
hard for the occasional lifting of ' 
the mandarins" veil. 

Hugo Young of the Sunday 
Times and Anne Sloman of the 
BBC therefore achieved some- 
thing of a breakthrough when 
they persuaded several serving . 
civil servants, as well as politi- 
cians, to talk about power in a 
BBC radio series last summer. 
This has just been published as 
a book entitled “No. Minister," 
Appropriately, this is compli- 
mentary to the caricature pro- 


vided in the' ; television series 
“Yes, Minister.” ... 

“No, Minister.” asks a series 
of questions about the working 
' of the civil - service: “Is ■ it !too 
powerful? Is it too big? Are 
civil servants Incompetent? Are 
they unaccountable? And who 
are the masters now?" . 

The answers, as Young and 
Sloman concede, are tentative 
rather * than clearcnt, They 
depend on- the strengths and 
weaknesses of individual Mini- 
sters .and , officials- and . on what 
Ministers demand of officials as 
-much as what they receive in 
return. . 

A consistent theme is that 
there is a distinctive Whitehall 
culture (as also reflected in 
Hedo and Wildavskys “ Private 
Government of Public Money”). 
Whitehall prizes the sober 
virtues of discretion, judgment, 
civility and fluency. Initiative 
'and radicalism are less obvious 
ways to the top. 

The result is. perhaps, that 
the mandarins have an instinc- 
tive • preference for continuity 
rather, than change, creating a 
powerful • hurdle for any 
minister eager for radical action. 
But the barrier is not insuper- 
able, as shown jn the changes 
achieved by Mrs Thatcher. And 
officials have at least half a 
case in arguing trial all they are 
doing is putting ** reality ’’ in 


■front of Ministers who may not 
• have fully thought through the 
uiipiicatioris of their policies. 

Another feature - of- the 
-distinctive - Whitehall culture, 
especially in the Treasury, is 
'- .an attitude almost of -monastic- 
ism. There is a sense that it is 
only the civil servants who' keep 
“the show .on the road" in 
'face of the caprices of Ministers, 
Commons committees, pressure 
groups and. not . least, the 
Press: 

All this adds' up to the feel-' 
ing- of exclusion from . business. 

' from politics aqd from tiiuch of 
the outside- world. -Admittedly; 
much has happened ..in recent 
years to promote a wider view 
with contacts and. exchanges 
between Whitehall and else* 
where. But an outsider tg still 
left with , the impression of a 
career structure which, though 
with many valuable features, 
restricts options and perspec- 
tives for many officials from 
their early twenties. 

The fact that there are ho : 
obvious solutions does not rule 
out change at all. In a review in 
yesterday's issue of The 
listener, Mr William Rodgers 
of the Social Democratic - Party 
says he agrees with the com- 
ment of Mr Peter Walker, the 
Minister, of Agriculture, as 
quoted in the book, “ about the 
need to promote high flyers 


more rapidly Jo the. top. • 

“ I would Uke ttf see young 
civil servants seconded as re- 
search assistants to "MPs. be* 
cause too few .officiate have in 
instinct :for parliament and the 
political process. T would 'weL- 
com© much greater recruitment 
to the. Civil Service* either -on 
secondment or a" permanent 
basis,- of those who have begun. 

■ their careers risk-taking jrt 

- industry, -commerce and the- 

' City. ' . - - . v ■ 

- “ Governments, . . , ' ministers ' 

- and , civil - -servants alike, . are 
-.least -at- home! in dealing with 

■ the pamer^ip^between^Wliltfr' 
hall and the., .^tflfc-creatia# 
world of’business.V ..V.. 

• Perhaps the last word should 
; go to Sir Patrick Nafrrie who 
retired .last year as - permanent 
secretary to the Department' of 
Health and Social Security. In - 
a suggested- conclusion to the 
book, he said: “Only, when 
Ministers ‘are ; . determined - . to 
pursue hew, and perhaps radical 
poorness-challenging the argu* 
mente of reality and. continuity 
ra the process— will the politi- 
cians exercise real power and 
be effectively on top: 

^“The promotion of .policy 
Change ,is the principal chal- 
lenge.of politics. We want good 
civil servants to identify the - 
.factors of reality, and' to make 
clear any disadvantage of dis* 



Sir Patrick ISfatrhc: “principal 
•Challenge of politics” 


continuity; but, even more, we 

jrant good politicians' who will 

oe- determined, clever, and if 
necessary cunning enough to 

harness, the intellect, energy 
and imagination ' of civil ser- 
TOrttsJo the Usk of overcoming 
the obstacles which too cautious 
a view of reality, or too great 
an emphasis oh continuity, can 
sometimes place in the path of 
the -Government." - 
Sir. ‘Patrick will, be able lo 
test out his. theories since he 
has just been appointed a mem- 
ber of the Franks committee of 
inquiry into .the Falklands 
crisis 


“No .itfiimrer” bu Hugo 
yoanff-and Ann* Sloroon, BBC 
publications, M,7S (£2.50 paper- 
buck). r 


s 


te*. 

fe. 1 -■ 


St:- 

i- 




S:.- 






•f. ■ 

I 


V 




Financial .Times Friday July 9 1982 


FINANCIAL TIMES SURVEY 


Friday My 9, 1982 




prZr& i '* ! m» 
*.->sS beaI 


pgCoemorfon^ ,'■ A 

l|flfaen^ \ L 

aPenfljyrideydTOert*^ ■- 
|y WYNEDD 


r-* ’■• V 
.- Santiyaroft ,, c 

«-v* mi vuin I n 


-Deeside 


y LTWD r*V- 

l - v Wnexfjcun 




iT 


^Cardtpau: 


r ^Uanfar ^ 

Cwranwn® OVVfehhpoof ’ 


;^LioncV«uJ..- J \ V 

ST J 

l|||^ 


KwJbwb__#_ 8ro*thJlrtas_o-o 


ncn iBgy _ — w _ orDiuiArwu^ 

Special Tmsj* JfojTms £> 


/ SOUTH' O 
GLAMORGAN 



Locations marked by a black star ara areas where the Welsh Development 
Agency has been undertaking new industrial estate and advance lactory 
building ■ programmes, arising from the steel industry cutbacks. The symbols 
in Mid-Wales, indicate centres for growth being- encouraged by the Development 
Board for Rural Wales. 


Illlillllli 


Regional development: latest plans 
Steel and coal sectors: facing renewed pressures 
The EEC: links have been strengthened 
Businessman’s guide: useful addresses. 

Clywd: attracting foreign manufacturers 

Gwent: new factory project 

Profile: AB Electronics Products Group 

Politics: impending by-election at Gower 

Constituencies: proposed changes 

Welsh tele vision: major developments 

This surv ey was written by Robin Reeves, Welsh 
Correspondent 



Waiting anxiously 
for the upturn 

WALES is anxiously awaiting an economic upturn. 
Exactly three years ago this month, the British Steel 
Corporation announced that iron and steel making 
' was to $nd at its Shotton Deeside plant, in North 
Wales. This signalled the opening of a new era of 
major cutbacks and redundancies which has con- 
tinued, with few interruptions, ever since. 

The latest major blow came only last month. BP 
Chemicals announced that 1,100. jobs are to be axed 
at its Baglan Bay and Barry plants — as part of the 
major rationalisation plan worked out with ICI to try 
to restore equilibrium to the chemical market. Yet, 
not long ago, BP used to boast privately that it was 
the most secure employer in South Wales — the long- 
promised recovery is proving very elusive. 


Zt is true that unemployment 
in Wales is no longer rising as 
rapidly as it was. Indeed, 
whereas initially the rate, of 
Welsh unemployment surged 
proportionally ahead of the rest 
of Britain (the level is always 
up to 50 per cent above the 
South-East of England}, there- 
after the English regions have 
been tending to rise more 
rapidly. 

It is also one of the ironies 
of the situation that the Govern- 
ment was being warned by the 
Commons Welsh Affairs Select 
Committee, two years ago, that 
it risked provoking "serious 
social disorder in Wales" unless 
it acted forcefully to reverse the 
increasing tide of joblessness 
arising from the steel rundown. 

In the event, the riots which 
spread like a bushfire through 
the English cities last summer, 
passed Wales by— providing 
concrete evidence that the 
Principality is a more peaceful 
society than even some of its 


H 



Some rays of economic sunshine 
are badly needed in Wales, 
to provide more jobs and if 
industry is to profit from the 
productivity gains made in 
the last three years. 


own politicians give it credit 
for. * It remains an interesting 
subject for sociologicial specula- 
tion. 

Perhaps the reasons is that 
unemployment is not a new 
experience in Wales and, 
although Welsh communities 
are economically deprived, they 
are longer-established and bold 
together better in difficult 
economic and social conditions. 

Even so, with 166,000 out of 
work (that is a jobless rate of 
nearly 16 per cent and still 
rising), black spots of up to 30 
per cent and more, and a grow- 
ing army of long-term un- 
employed, there is a major 
problem. 

Some rays of economic sun- 
shine are badly needed, not only 
to start making a dent in the 
unemployment statistics, but 
also simply to allow Welsh 
industry to start profiting from 
the major productivity gains 
which have undoubtedly been 


chalked up in the past two to 
three years. 

‘ Despite -the recession and 
poor immediate prospects, many 
companies throughout Wales 
have invested sums they could 
ill afford at painfully high 
interest rates, ready for the up- 
turn, They feel in need of a 
"break.” 

Nowhere is this more true 
than in the steel industry. The 
productivity gains at BSC's 
Llanwern and Port Talbot 
steelworks have won national 
and international acclaim. Yet 
the level of orders is such that 
there is now fresh speculation 
that BSC may be forced to con- 
tract its steel-making capacity 
still further, and that one of 
the two major Welsh plants may 
still he the fall victim. (The 
alternative target, Ravenscraig 
in Scotland, has not improved its 
performance by anything like 
the same extent. But its closure 
would leave Scotland without 
any significant steel-making 
capacity.) 

A taste of things to come may 
be the loss of more than 300 
jobs at BSC’s Panteg stainless 
steel works, announced last 
week. 

Shadow 

Steel’s difficulties, in turn, are 
casting an even darker shadow 
over the South Wales coal indus- 
try, for whom BSC represents 
the most important customer, 
after the Central Electricity 
Generating Board. 

Added to the effect of the re- 
cession on electricity demand, 
the high cost of stockpiling 
coal, and the difficult working 
conditions in South Wales, it is 
already clear that the coalfields' 
losses in the past financial year 
have topped the £100m mark 
and revived the spectre of pit 
closures. 

The promise of more buoyant 
economic conditions would not 
only help these two basic in- 


dustries. They would also help 
rebuild confidence and margins 
in other hard-pressed sectors of 
the Welsh economy, such as 
motor components, plastics, 
chemicals and even microelec- 
tronics. 

The days are over when micro- 
electronics sector was growing 
so fast that it was immune to 
the general economic climate. 
7nmo5's manufacturing plant at 
Newport, Gwent, is now nearing 
completion as scheduled, but 
this National Enterprise Board 
project will require a further 
£5m to £10m on top of the £50m 
invested so far. 

Service industries have also 
been feeling the pinch, notably 
tourism — an important econ- 
omic activity in many parts of 
Wales. 

Last year income from 
tourism actually fell, reflecting 
the stiff competition from the 
overseas package tour trade, the 
stronger pound which has also 
made Britain less attractive to 
foreign tourists, and the sleep 
rise in unemployment in the 
Midlands and North-West of 
England from where Wales has 
traditionally drawn a significant 
section of its tourist business. 

There is still ample scope for 
tourist growth, particularly in 
the short break and second 1 
holiday markets. But it needs 
the right investment and mar- 
keting to fulfil its potential. 

The onset of a recovery would 
also help Wales to reap the 
benefit from the major invest- 
ments which bave been under- 
taken in the industrial Infras- 
tructure by the public sector 
during the recession. 

The Welsh Development 
Agency has been particularly 
busy. In the past 12 months, it 
has completed more advance 
factories than in the whole of 
the previous five years of its 
edstance. This is as the special 
crash programmes of industrial 


estate and advance factory 
development undertaken in the 
wake of massive steel job losses, 
come to fruition. 

Inevitably, the WDA’s stock 
of unlet premises has been 
rising — from 7 per cent to 14 
per cent over the past 12 
months — but when set against a 
total portfolio of 20m sq ft of 
factory space, and the economic 
climate, this percentage is 
regarded as reasonable: particu- 
larly in view of the fact that 
the WDA’s vigorous marketing 
efforts, notably on television in 
the South-East of England, have 
succeeded iu letting a record 
1.5m sq ft in 1981-82 — no mean 
achievement during a recession. 


Requirements 


Even so, the average size of 
company locating in Wales 
these days is smaller than it 
used to be. Whereas the redund- 
ancies tend to be measured in 
hundreds, the new jobs come 
in tens. Todays small company 
may turn out to be tomorrow's 
major employer — and the WDA 
has just launched a venture 
capital subsidiary, Hafren 
Investment Finance, to try to 
spot such companies — but all 
businesses require a buoyant 
economy to grow and expand. 

Continuing uncertainty over 
the economic outlook has, in the 
meantime, slowed the influx of 
overseas companies into Wales, 
to a trickle. 

Certainly, the Development 
Corporation for Wales — 
responsible for Welsh indus- 
trial promotion overseas — has 
been processing more inquiries 
than ever before from com- 
panies looking at Wales as a 
possible EEC ' manufacturing 
base. But obtaining definite 
commitments is proving excep- 
tionally difficult. 

By far the biggest project in 
this respect is, of course, of the 
Japanese Nissan Motor Com- 
pany's plan to establish a UK 


assembly plant, promising 
ultimately some 10,000 new 
jobs. No less than three of the 
five short-listed sites are in 
Wales — one alongside Llanwern 
Steelworks, Newport, Gwent: 
another between Cardiff and 
Newport; and the other at 
Deeside. in North Wales. 

But a definite go-ahead for 
this project looks no nearer 
than it did JS months ago, when 
news of the possible investment 
was first received. Indeed, the 
prospect could disappear 
altogether because of fears of 
the effect on the Midlands 
motor industry and upon British 
component producers. 

Probably nobody in Wales has 
staked his political reputation 
more on an economic upturn 
being forthcoming than Mr 
Nicholas Edwards, the Welsh 
Secretary of Slate. 

Throughout his tenure at the 
Welsh Office, he has publicly 
backed the Loisscr Faire thrust 
of the Government's policies, 
even when they have hit Wales 
hard. But thereafter, he has 
fought to ensure that Wales 
receives the funds necessary to 
improve its industrial infra- 
structure and so attract 
tomorrow’s growth industries. 

He has led several Develop- 
ment Corporation missions to 
the U.S. and Japan to search out 
such companies and encourage 
them to come to Wales. 

In the absence of an upturn 
soon, Mr Edwards’ political 
opponents will start to attack his 
strategy, as "threadbare." He 
needs soon to be able to point to 
some tangible pay-offs for all the 
industrial shake-up and social 
pain of the past three years. 

Yet, news such as BSC's 
renewed difficulties are pointing 
in exactly the opposite direction 
— towards more stringency and 
retrenchment. 

In short, Wales is still 
anxiously awaiting an upturn. 


tv.- ' • ,r - » - *■ ^ ‘ ' ' " ' ■ ; . • , 

rz " Z 4 *;w, .. v.. : •*■■■■.•■ : 1 . : 

. v • - . • • ■ • 









o 


■ -’v 





Vlf \^V = . 




Sr 


iSS&Z: .,1 






sV; i jmp* - :--"^SSEs 














- : ..... *. ■ " 


--S'': viyJSffl 




yS 




y>jL 




j.-. ■■■ 

’» -J - ■ ■ - ; #*%«'** - 




Notthat were suggestingthattheEThas We’re building factories and workshops, 

overlooked some of the vital facts. We’re providing financial assistance to 

It’s just that no-one knows Wales better both new and established businesses, 
than we do. We’re constantly in the process of land 

We have experts fkniHar with every aspect reclamation. 
ofWales and Welsh industry. AH this adds up to a considerable invest- 


ment in the future ofWales. 

If you’d like to know more, talk to us first 
And we’ll give you the full story. 


WELSH 




PONTYPRIDD, MID GLAMORGAN CF37 5LT. TELEPHONE: TREFOREST (.044 3t>5) 2666 







*.»*,' j-bm ;.*w. »•*& t * *.» IM{ V *\*T | - v- -W' i- 


12 


WALES n 


Vandal llm^- Rnday ^ 1982 


Fresh initiatives by the Welsh Development Agency , 
and the Development Board for Rural Wales. . 

Plans for regional development 


THERE was a joke going ■ ‘ 
round Wales in the mid-1970s 
that you needed to be a 
Scotsman to get a top job in 
the Principality. It was 
started hy the appointment ot 
two Scotsmen to ran the new; 
regional development bodies 
then being created by the - 
Lahonr Government — the 
Welsh Development Agency 
and the Development Board 
for Rural Wales. 

The first, Ian Gray was no 
stranger to Wales or to the 
size of the task before him 
when he was appointed chief 
executive and managing 
director of the WDA. As 
head of the Industry Depart- 
ment’s Welsh Office in the 
1960s. He had been closely 
involved in the work of 
attracting new industry to re- 
place the thousands of jobs 
being lost in the Welsh coal- 
fields through pit closures. 
Returning to Wales after a 
few years with Skelmersdale 
New Town Corporation, Mr 
Gray threw himself into the 
task of building up an institu- 
tion which could make a last- 
ing contribution to the Welsh 
economy. 

It required no mean political 
skill. On one side was a 
hostile Conservative Opposi- 
tion, deeply suspicions of an 
interventionist body created 
by Hr Tony Benn, when 
Industry Secretary. On the 
other were the trade union 
movement and, the Left who 
wanted a WDA which inter- 


vened to a maximum In the 
Weld economy. 

Ian Gray has managed to 
retain the confidence of two 
sets of political masters. Only 
last year, both sides of the 
Commons paid warm tribute 
to his management of the 
- agency in a Weld Grand 
Committee debate on the 
.WDA. 

The fact is that in spite of 
running a public sector inter; 
Tendon agency,, he 'is also as 
enthusiastic . believer in. the 
disciplines and rewards of 
the market economy and the 
value of tiie entrepreneur. He 
has regarded the agency's 
task as creating and nurtur- 
ing an economic environment 
and infrastructure in which 
private enterprise can 
-flourish and so create a more 
balanced and diversified 
Welsh economy. 

Dr Tain Skew is, managing 
director of the Development 
Board for Rural Wales, 
arrived at the DBRW*s Powys 
headquarters with a wide 
experience of the problems 
involved, acquired at Scot- 
land's Highland ' and Islands 
Development Board and the 
Yorkshire and Humberside . 
Development Association. 

He quickly gathered a team 
which, . over . the past five 
years, has been tackling the 
economic and social weak- 
nesses of mid-Wales with 
unparalleled - - energy, enthu- 
siasm and commitment 
indeed, the board made' "so 


rapid an impact that, in 1979, 
the incoming Conservative 
administration felt obliged to 
drop its original plan to place - 
the DBRW under the Welsh 
Development Agency's con- 
trol. It has not only kept its . 
independence, 'but this year 
Mr Nicholas Edwards, Welsh 
- Secretary of State, paid par- 
ticularly warm tribute to its 
work on the board's- fifth 
. anniversay. 

> Tain Skewis's persuasive 
message has been- that mid- 
Wales is a. unique industrial 
'location' with' strengths and 
weaknesses which, are quite 
different to those of. other 
parts of Wales or the UK. 
Under no circumstances there- 
fore should the region be 
lumped in with Cardiff and 
the industrial valleys but 
should be left free to mar ket 
its own qualities. 

To this end, there has been 
a steady stream of imaginative 
ideas for selling mid-Wales to 
the incoming industrialists. 
This March, Tor example, the 
DBRW has been naming an 
exhibition train to centres 
around Britain to explain the 
'benefits of the “ mid-Wales” 
experience to those who would 
like to come and take advan- 
tage of it as either small bust- ■ 
nessmen or tourists. ' 

At the same time, the board 
has been anxious to encourage 
growth from within. New 
enterprise courses hi -associa- 
tion with the Manchester BusI- 


mac 




"Naturals we looked at a wide choice of 
sites for this important expansion project 
We are convinced that we have made the 
right decision in coming to Flint in Clwyd, 
not only for its Special Development Area 
Status, but also for its first class communica- 
tions and excellent labour relations record". 

P.G. Thomas. Plans Manager, 

Kimberly-Clark Ltd.— Flint 
A major commitment by a company of 
international reputation. More positive proof that 
when it comes to deciding where best to relocate 
or expand, Clwyd takes some beating. 

For major companies like Kimberly-Clark, through to 
smaller businesses just starting out, Clwyd works, day 
in, day out. 

In the last 4 years, over 200 companies have chosen 
■Clwyd. We know why. 

For example, a highly skilled and trainable workforce, with 
an outstanding Industrial Relation's record are as important 
as the new motorway and dual carriageway link to the 
national motorway network— 15m consumers are just 2- lorry 
hours away. 

Above ail, financial incentives, equal to the highest available 
anywhere in mainland GB., are the key component in the Clwyd 
package. 

In helping you we promise positive attitudes, without red tape. 

All the tacts are in our colour brochure. For your copy, contact 
Wayne S. Morgan, County Industrial Officer, Clwyd County Council, 
Shire Hall, Mold, Clwyd. TeL Mold 10352) 2121. Telex 61454. 

Clwyd 

at the peakof Welsh potential 


CARDIFF 

AGWWCTIV 

— St David's HaH, open In October — CanJIfFs newest pu/pose-Mt 
conference hall for meetings of 600 to 2000 

— first class hotels with many additional meeting rooms 

— an abundance of accommodation aid meeting rooms 
at the University 

— first-rate shopping and many tourist attractions - ■ 

— easy and quick to get to by motorway 
and High Speed Trains 

For farther in f o rm a tion, write to 
Robert Corder, Director, 

St David's Han, 

P 0 Box 20, Canfff CF1 ZSH 
» Cardiff (0222) 42611, 

WALES' CITY OF ELEGANCE 



School for those who. 
aspire to own their own com* . 
‘ panics are only one of ft wide 
range of methods being tried 

- to rear a generation of entre- 
preneurs. Other schemes in- 
clude help for village shop- 
keepers to improve their busi- 
ness maypggpm w i t and nlM 

missions for small companies 
* in mid-Wales to major exhi- 
bitions. 

A measure of the succ essor 
Tain Skewis and the DBRW 
' team is that in a recent sur- 
vey many local companies- 
gave the backing provided by 
the DBRW as one of the big 
advantages of operating In 
mid Wales — though it was not 

- actually an option on the 
survey questionaire. 

Iain SkewisV main worry' 
of .late has been the Govern- ~ 
meat's intention, announced 
three years ago, of phasing 
out assisted area status of 
large parts of the DBRWs 
operating area, altogether, 
from August 1, this year. 

Mid-Wales generally lost 
out because .the main review 
yardstick was unemployment, 
whereas this region’s main 
problem has been sparsity of 
population and a comparative 
lack of amenities. 

The Government, despite 
strong pressure, has just' 
decided not to change its. 

- announced policy, hut. as 

compensation, has given the 
DBRW . the power to make 
discretionary grants — up to . 
a total of £350,000. . _ 



USEFUL ADDRESSES ter the 
businessman in Wales include 
the following: 

• Welsh Office Industry * 
Department 

Government Buildings, . 
Gabalfa, Cardiff CF4 4YL. 

Tel: (0222) 62131 
Telex: 498267" ' “ 

Answer code: WOCARD G. 

The Welsh Office industrial 
Department offers selective 
financial assistance; interest 
relief grants; removal grants; 
rent-free period in WDA/. 
DBRW factories; loans from 
-European - Investment Bank; 
contact for loans from Euro- 
pean Coal and Steel Com- 
munity. 

Other assistance is offered on 
allocation of factories; export 
promotion; government con- 
tracts preference scheme; 

: energy conservation. 

• Welsh Development Agency 
Trefbrest Industrial Estate, 
Pontypridd, 

.Mid Glamorgan CF37 5UT-. .. • 
TftL- Treforest 2666 
Telex: 497516 
Answer Code: WELDEV-G 
The WDA offers assistance on 
equity capital; commercial rate 
loans; small business loans 
(reduced rate of interest in 
some areas); industrial sites 


and factories (bespoke and 
advance) ter sale or rental in 
North, and South. Wales; there 
Is also a business advisory ser- 
vice; and a small business unit 

• Development Board for 
Rural Wales 

Ladywell House, . 
iNewtown, Powys SY16 1JB. 

Tel: (0686) 26965 
Telex: 35387 ■ 

■Answer Code: DVBDKW G 
The board offers assistance 
on loans up to £50,000 (com- 
mercial rate) in Mid Wales; 
small business loans (reduced 
rate of interest); industrial site 
and factories (bespoke and 
advance) for sale or rental in 
Mid Wales; there is also a busi- 
ness advisory service; and key 
worker housing in Mid Wales. - 

• Manpower Services 
Commission 

Companies House, 

Maindy, Cardiff CE4 3UU. 

Tel: (0222) 388588. 

- Employment Services Divi- 
sion: Jobcentres and employ- 
ment offices; advice on recruit- 
ment. .... 

-^Training." Services: _ Division: 
SkHfcenties or training. Provi- 
si&r 'of instructors and. special 

.courses. - .i-:- 

.* Development Corporation 
for Wales 

Peari Assurance' House, 
Greyfriare Road. 

Cardiff CF1 SAG. 

Tel: (0222) 371641’* . 

Telex: 497190 ' : : 

Answer Code: DEVCQR G 
The corporation offers co- 
ordination of information on all 
aspects 'of industrial develop- 
ment; inteodu(^te3ai2uid -visits to 
ail relev^ dt^dB'B4tibns; it is 
aW the- ofttiaal- oversea^ promo- 
tional body' for Wales. . 

•- EEC Office for Wales 
4, Cathedral Road, Cardiff: 

Tel: (0222) 371631 
Telex 497727 
Answer Code: Europa G 


More assistance from Brussels. 


Key industrial sectors' faced renewed pressures 
of cutbacks and redundancies. 

Critical time for steel 




STORM CLOUDS are once 
again gathering over the steel 
and coal industries of Wales, 
despite the dramtic and' widely 
acclaimed improvements in the 
efficiency and productivity of 
both sectors during the past two 
years. 

In the steel sector, there 
fresh warnings of furtht 
dundancies and .possible 
closures, in order to bring 
British Steel Corporation 
profit, as the steel order 
has sharply declined. 

In’ the coal sector, financial 
losses sustained by the South 
Wales coalfield are reported to 
be at record levels. The miners 
have been told by union leaders 
-to brace themselves for a pos- 
sible further showdown over pit 
closures. 

It is not always widely appre- 
ciated that the scale of the cut- 
backs in the WeL* steel indus- 
try over the past four years Is 
bigger than anything that has 
happened within the industry in 
Europe. The cutbacks began in 
1978 with the outright closure 
o€ East Moors Steelworks, in 
Cardiff, and the ending of iron 
and steedmaking at Ebbw Vale. 

A year later, with Conserva- 
tives in power, measures were 
announced to halt the drain of 
BSCs Ipsses on the public 
purse; this meant the end of 
iron and steelmaking at Shot- 
ton Steelworks in North Wales, 
creating more than 7,000 direct 
redundancies — the biggest 
single job loss in Britain since 
World War Two. ■ 

Before the year was out BSC 
was seeking a further 11,000 to 

15.000 redundancies at Port Tal- 
bot and Llanwern in South- 
Wales, under its “ slimline 
plan " to bring manning at both 
works dflwn to internationaiHy- 
coippetitive levels. 

Jobs lost 

Within 12 months, another 

5.000 jobs were being axed at 



-The rotor of one of six 300 MW generators being positioned 
at the CEGB’s Dinorwic power station under construction in 
North. Wales. When completed, this underground facility will 
be the largest pumped storage power 'station In Europe' 


as being' firm evidence of Its 
international competitiveness. . 

Wades can reasonably argue 
that its steed plants have done 
everything the Government has 
demanded on behalf of the tax- 
payer. And it could cl aim, that. 


This is a £200m project to 
exploit the last remaining major 
. reserve of raking coal left in 
the UK From 1990 onwards, 
it would yield Lm tonnes of coal 
a year for at least 50 years. 
But it has to be noted that the 


Welsh steel and tinplate plants .of 

under the “survival plan of 
Mr Ian Macgregor, the incoming 
BSC chairman. Now there is talk 
of a further 10,000 redundancies. 

It is a measure of the trans- 
formation which has taken place 
in the productivity of the Welsh 
steel industry that Llanwern has 
been hi g hli g hted in a Conser- 
vative Party Political Broadcast 
as one of the success stories of 
the Government's economic 
‘poticies. 

. In the -financial year which 
ended in March, Llanwern steel 


if, because of a permanent -present climate for a decision in 
contraction in the steel market, favour of Margam is hardly 
the closure of one of BSCs • auspicious, 
three strip steel plants is likely, 
then on performance grounds, 
tiie victim should be Ravens- 
croft in Scotland. Furthermore, 
some SO per cent of BSCs 
finishing plants are kv Wales. 

But Wades is equally aware 
that, ultimately, the derision 
will be a political one— and the 
dosing of one of two Welsh 
plants may be regarded as 
easier than shutting Scotland’s 
only plant 

Despite IIS record, Llanwern 
stM feefa the more vulnerable 
because, unlike Port Talbot, it 
does not have Concast or its 
own deep water harbour. 

In the meantime, the decline 
in steel demand' is adding to 
the worries surrounding the 
Welsh coal industry. The steel 


I 


J 






reduced the market for Welsh, 
coking coal by more than 50 
per cent, as steel output was 
halved jind BSC switched to 
supplying Port Talbot exclu- 
sively with cheaper imported 
coking coaL 

Since then, Port Talbot has 
resumed taking some Welsh 
coal, but prices are relatively 
low 'and the demand from 
power stations is also down as 
a result of Ihe' recession and 
the- dedin®:, -in dectrtefty 
demand- Coal exports have been 
stepped up to the Continent/ 


production: totalled l-Sm. tonnes- ■ simply in order to keep stories 
just short of the record out-, manageable and-' improve cash 
put achieved in 1971-72. Yet the flow. 

workforce, at *446 The W'r<ssult‘ is. that the 
is less than half the number it; SouthWaleS coalfield deficit in 
was only .wo years .ago. ■ i981-82 is expecte(i to top- the 

Quality has also improved, recoxfl ' £lQ(Jm mark when -’the 
Llanwern shoot steel has .been figures are released .later tins 
selected ■ for key parts for the month. This will brltig renewed 
Metro after- a Europe-wide hunt, presiire for. further pit. closures, - 
by BL Cars for the bestr steely early retirement r and reduh- 
availablq. "V dandes among the 24,000 miners 

So far. Port Talbot has not of the region.. ...... 

been quite ' to " mp.t & 1 * The :s^ .are that a confront , 

tation could be avoided if fresh j 
is abou t to rea p the 'benefit of a investment in productive : pits' j 
£100m investment in continuous ' promised ” ln" exchange ' ter 
.casting* faritities.^Once com- the closure of the biggest loss- 
nusswned; Omcart lm .. the^aj^^. Alfcou#' the' South 
rapacity to reduce Part Tdbofs .Wales, miners led the wildcat 
production costs by a further - strikes against the -NCB's 
25 pet cent - - - 


Port Talbot recently won an 
order for 10,000 tonnes of semi- 
processed steel from Kaiser 
Steel of California — hopefully, 
the first of many orders, as well 


closure list; 18 months ■ago-, they 
have since " agreed - Jo three 
closures. They would ^ruf- 
doubtedly agree others, tf given, 1 
in particular, a go-ahead for 
the Margam superpit 


IN CONTRAST to the Republic 
of Ireland, just across the water, 
there was no. great enthusiasm 
in Wales for joining the Euro- 
pean Economic Community, 
nearly 10 years ago. 

Many.- vocal opponents of 
■membership argued that. 
Wales’s peripheral postion 
within the UK would become 
even more exaggerated and 
-make the task of strengthening 
and diversifying the Welsh 
economy that much more diffi- 
cult 

Even so, when it came to the 
1975 Common Market referen- 
dum, Wales, along with the rest 
of the UK, voted by a comfort- 
able majority in favour of 
remaining within the EEC — 
despite the campaigning oppo- 
. sition of many in Wales, includ- 
ing the Labour Party, the 
Welsh TUC and Plaid Cymru. 

Although the relationship 
continues to be a controversial 
one, the links between Wales 
and the EEC have been growing 
apace ever since. 

According to figures given 
last month by the Welsh Office 
to- the House of Commons’ 
Welsh Affairs Select Committee, 
identifiable grants and loans to 
Wales from Brussels (up to 
March 31, this year) totalled 

£9 25.65m. 

Welsh industry and. .local 
authorities have been in a 
position to qualify for most of 
the loans and grants available 
through the EEC's varied range 
of financial instruments. 

But Welsh .demands on Brus- 
sels have also been stepped-up 
by the crisis in the European 
steel industry. 

ECSC loans and grants 
account ter more than a third, 
of the total Welsh EEC aidU as 
the financial instruments have 
been mobilised to help cushion 
and rebuild the local economies 
of communities hit by massive 
steel redundancies. 

The assistance has ranged 
from income subsidies (tfc 
soften the blow which many 
steelworkers suffered after los- 
ing their jobs), to soft loans for 
companies willing to invest and 
provide new job opportunities 
in .steel closure areas. . 

In the past year, the Welsh 
Development Agency has been 
appointed agent ter ECSC soft 
loans, as well as being agent for 
the - Industrial 4tnd Commercial 
Finance 'Corporation (ICFC) 
and has been marketing these 
facilities vigorously. 

More recently, the EEC Com-, 
mission and in particular, the 
Welsh-born Commissioner for 
Employment and Social Affairs, 
Mr Ivor Richard, has been 
anxious to play an even more 
direct role in promoting new 
job opportunities. 

EEC grants baVe been made 
available for workshop schemes 
and other starter units. The 
EEC Commission has told the 
Welsh Office it is prepared to 
matrix , the Government funding 
being sought: by the Welsh TUC 
for a Workers* Co-operative De- 
velopnwnt and Resource Centre 
— a project inspired by the 
Mon dragon co-operative experi- 
ment in the Basque Provinces 
of Northern Spain. 

Another recent development 


Is the launching of an EEC- 
backed wages subsidy scheme 
jn the three rural Welsh coun- 
ties of Gwynedd, Dyfed and 
Powys, Under the scheme, 
companies employing fewer 
than 25 persons which are 
willing to expand can claim 
30 per eent of wages of the 
extra employees ter six months, 
part of which will be paid for 
by the EEC Social Fund. 

Encouraged by this scheme 
and - the benefits which 
industrial Wales has secured 
from EEC sources, the. three 
rural counties have . also 
recently made a joint sub- 
mission to Brussels which sets 
out the economic, social and 
cultural problems of the region. 
It is hoped that this will pro- 
vide a framework for further 
EEC aid. . 

Friction 

Interestingly, as the Princi- 
pality’s links with the EEC have 
developed, there has been grow- 
ing friction between - local 
authorities and the Welsh Office 
and Whitehall. An immediate 
point at issue is the Govern- 
ment plan, to phase .out the 
Intermediate Area status of 
large parts of rural mid-Wales 
at the beginning of next month, 
thereby barring those areas 
from receiving EEC assistance, 
as well' -as national add. and 
mo ki n g the work of the Devel- 
opment Board for Rural Wales 
significantly more difficult. 

. Rightly or wrongly, the 
Community is only prepared to 
assist areas ' which are also 
regarded by their own govern- 
ments as having special prob- 
lems. 

The point Is bring increas- 
ingly emphasised, however, that 
the European Community is 
about more than simply secur- 
ing cash aid from Brussels. In 
the context of the Labour 
Party's hopes of withdrawing 
from the EEC, if Labour should 
win the next general election, 
the CBT has launched a cam- 
paign to stress that a significant 
slice of Welsh industry is now 
geared to supplying tire EEC 
market rather than simply the 
UK done. This is particularly 
true of foreign-own ed com- 
panies. 

According to the Welsh Office, 
EEC membership has been a 
key factor in location derisions 
by overseas companies and has 
prompted a definite quickening 
in the pace of inward invest- 
ment to Wales, notably by U.S. 
'and Japanese companies. 

Since 1973, around 60 foreign 
manufacturing companies from 
outside the Community have 
established units in Wales. 
These developments promise 
eventually to provide 11.000 
jobs. 

The- Welsh. Office comments: 
“Over one-third of these com- 
panies indicated spontaneously 
that their afim was to serve the 
wider Community market and 
there is no doubt that this was 
also a powerful factor in many 
of the other investment deci- 
sions.” 

.On the other hand, the 
Welsh Office also concedes that 
EEC entry has not led to a great 
deal of investment m Wales by 
European companies. 


^■the 

future 


Today fiction is becoming reality, and the commun- 
ications revolution is reshaping the way we live 
In the forefront of that change is Gwent the new 
centre of Britain's high v • 

technology industry. 

Why have so many world 
leaders like Inmos, Mitel, 

Plessey Marine and 
Ferranti chosen to set 
up their new factories in Gwent? 

Gwent has first class comm 
ications by rail and road. 

London is only ninety-three 
minutes by high speed train, 
and Birmingham is just ninety 
minutes away by motorway. 

Heavy investment in high- 
tech education in Gwent 
■ Colleges gives firms a head 
start when it comes to recruitment ‘ 

As the most successfol companies have proved, a good • . 




r~ 

■i . . 
i* > 

f • : 

I 
I 
I 

I 

«-i 

I. 

{'! 

' r j 



i.IThandriAsEa^nce ..f.^SradlhiscoiqpQntoc-Iifct 

1 ^CfcuntyPiaiirmsOffias^C&ii^ 





I 


. 1 .: 




- - >■', S Mi. .it- ifi .S 


r--, 

tc 


j 


financial Times Friday July 9 1982 ,. 

WALES 


13 


New Gwent factory project 

is neaita « completion on Torfaen Cotm- 
Pontnewynj>dd Industrial Estate (right) at 
™^pool, Gwent where the borough council is completing the 

totalling «.000« f£ 

Sion tLSSS 1 fa InTOsa ^ £700.000 on the factory site expan- 
r®P* subsidy scheme, claimed to be the first 

by a Welsh council, is expected to be a stiraS 
attraction for new businesses to the site. 

eaeh^K Jf offerI, l ff a 36 P er wages subsidy on 
ml! jlJ 0 ® 'bP manufacturing companies for unemployed 
h,,c^f Und *? CJ ^i rea i ened *W J e. The scheme swiftly attired 
businesses to other sites at Abereyehan and GwenaOt. ' 


• 

y ,, '|vy » ^ w * .'■■y -■ .,y. .■ a s . ,yy /. *• ^ • K'W.'s^i-v.p 

■. v* ^ *■■%•••■ *• ■“ ? |' 


■f'-w/»w^ , 'wy 1 "j* vy.i-i 
.. .... ■. •'*■•■■ 



5 3-V‘ fS 

i- . J?-' ■ j ’ *£ 'v-V .’i- 


ii-'V'K. Kai^&KSSsSS 


Further industrial diversification in the county of Clwyd 

County attracts foreign manufacturers 


TETRAFAK RAUSING, the 
Swedish packaging company, 
opened its Wrexham plant in 
September, 1980. It was the 
fourteenth factory to be estab- 
lished outside - Sweden by- 
Europe's largest manufacturer 
of laminated papers and carton 
packaging systems for milk, 
fruit juices and beverages. 

Although' Tetrapak had its 
•own sales organisation in the 
UK for 25 years, it was still 
uncertain of the market growth 
potential and promised no 
more than 70 jobs. ■ 

The company opened - a 
second #■ production line, last 
month, bringing its total 
investment at' . Wrexham " to 
more than £22m. The job level 
has risen to 235, in three shifts. 

The plant is now working 
fiat-out to meet a demand for 
its packaging system which the 
company says is growing at a 
rate of 30 per cent a year. 

Tetrapak is just one of a 
number of overseas companies 
which have moved into the 
county of Clwyd. In the north- 
east corner of . Wales and, in 
spite of the recession, are now 
enjoying expansion. 

Less, than a mile away, the 
U.S.-owed Continental Can 
Company, part of the largest 
packaging group in the world,, 
has also expanded its facilities 
since it first decided to enter 
the UK beverage can market 
by establishing a £25m plant 
at Wrexham. . 

Next door, Kellogs (which 
came to Wrexham in 1977) has 
been recruiting recently for an 
additional production line. 

Also in packaging. Metal 
Box’s Wrexham plant has been 
in the forefront of the rapidly 
developing market for large 
polyethylene-erephthalate (Pet) 


plastic bottles for carbonated 
alcoholic and soft drinks. The 
.demand, has grown from 
virtually nothing in 1978 to an 
estimated 200m units last year; 
a- One-litre bottle production 
line, has recently been added 
to .the popular 1.5 and two-litre 
sizes. 

Further west of the county, 
Hotpoint is putting the finish- 
ing touches to its new washing 
machine facility, near 'Khyl. 

Despite the more difficult 
economy, more new' inves tmen t 
is taking place in the county 
than ever before, says Mr 
Wayne Morgan, Clwyd’s indus- 
trial development officer.. 



Progress 


During the past five years, no 
less than 240 new manufactur- 
ing enterprises have set up 
within the county's boundaries. 
The nature of industrial -invest- 
ment these days tends to be 
more capital intensive and less 
labour intensive. With the 
labour force still growing and 
redundancies still occurring 
unemployment has therefore 
continued to rise. 

. Clwyd’s jobless rate is not far 
off 20 per cent at present, the 
highest level of any county in 
Wales. Yet unemployment is 
not endemic to this part of the 
world. 

Until the mid-1970s, the local 
economy’s major stakes in coal, 
steel, textiles, aerospace and 
heavy engineering, resulted in 
a strong net immigration of 
people into the county. 

But of those industries, only 
aerospace is currently prosper- 
ing. British Aerospace’s factory 
at Broughton builds the HS-125 
executive jet and is closely in* 


Clwyd . . . 240 new nuutnfac- 
• taring enterprises in the 

county in the past five -years. 

volved with the highly success- 
ful Airbus. 

Pilttington’s avionics sub- 
sidiary is - at St Asaph in the 
west of the county. But the 
once large coalfield in North 
Wales Iff now down to two col- 
lieries; Courtaulds’ radical 
retrenchment policy has deci- 
mated employment- in Clwyd's 
once large textile industry; 
while steel has suffered the big- 
gest single redundancy of any 
plant in Britain. 

The shutdown of iron and 
steelmalting at the British Steel 
Corporation’s Shotton works, 
two and a half years ago,, 
resulted in over 7,000 
redundancies. 

Since then, a further 1,000 
jobs have gone from the plant, 
but its remaining finishing mills 
and coatings complex for strip 
steel has been breaking produc- 
tion records, recently. 

Coal and steel are also, the 
basis - for two particularly . 


interesting developments 
planned within the county. 
Point of Ayr colliery has been 
selected as the site for the 
National Coal Board’s oU-from- 
eoal pilot plant. 

The project, which will cost 
£50m has suffered a setback be-' 
cause of the sudden withdrawal 
of BP from the financing con- 
sortium. But the NCB remains 
keen to go ahead and the Gov- 
ernment has just announced it 
will re-examine the project 

.Near Mold, a newly-formed 
company, Mixallo, Is manufac- 
turing metal strip alloys from 
metal powder, Using a new tech- 
nology developed by BSC at 
Shotton (just before the run- 
down) and now licensed to the 
company. . 

Because of the scale of the 
Shotton redundancy, the Gov- 
ernment agreed to upgrade the 
“ assisted area ” status of Dee- 
side to "special development 
area," along with . Wrexham, 
and to make £15m available as 
special aid for industrial estate 
development, advance factory 
construction, and other infra- 
structure improvements. 

At the centre of the county’s 
industrial diversification pro- 
gramme has been- the Wel6h 
Development Agency’s Deeside 
Industrial Park, situated along- 
side the Shotton steelworks site. 

It now has 541.500 square feet 
of- factory space either com-, 
pleted or under construction 
and has already attracted some 
highly prestigious projects. 
They, include the titanium 
granules plant being developed 
by a consortium of Royal Dutch 
Shell; BH and Rolls-Royce, the 
BICC — Coming Glass joint ven- 
ture to produce optic fibres for 
the communications Industry 


and, more recently. Kimberley- 
dark and Squibb Surgicare. 

The' latest news is that United 
Paper Mills, Finland’s biggest 
paper group, may build a f 122m 
newsprint mill at Shotton. A 
decision will be made at the 
end of the year. 

In the longer run, a number 
of . smaller developments may 
prove equally important. If they 
succeed in breeding a new gener- 
ation o£ major industrial em- 
ployers in the future. 

For example, Wrexham 
Borough Council, with Welsh 
Office and EEC financial help, 
has just put the finishing 
touches to a £4m high quality 
redevelopment of a former 
Rubery Owen factory complex. 

The 16-acre site— the White- 
gate Industrial Estate — is offer- 
ing units from 500 square feet 
to 40,000 square feet 

All are fully serviced and the 
entire site is protected* by a 24- 
hour security system; The speci- 
fic aim of the venture is attract- 
ing high value, new technology, 
young enterprises with strong 
growth potential. 

Clwyd County Council has 
already had notable success with 
the development of purpose- 
built workshops, called Pinfolds 
— an old English term for a 
protected compound for stray 
animals. ' The first pinfold 
offered 34 nursery units, rang- 
ing from 250 square feet to 
1,000 square feet plus experi- 
enced management advice, on- 
the-spot; all but four units have 
been let to aspiring entre- 
preneurs. 

. Welsh Office backing has just 
secured for building another 
pinfold, this time at Rhyl, which 
will provide accommodation for 
another 18 workshops and 245 
new jobs. 


'■'7 ; Back ia tbe news again: the>AB Electronic Products Group. 

Another success for electronics company 


THE AB Electronic Products 
Group has stolen the headlines 
twice in recent weeks. Last 
month it announced the pur- 
chase of Cleanone Electronics 
from the receiver for £250,000. 
This is a rescue which will 
help maintain -the supply of 
Acorn microcomputers, chosen 
by the BBC for Its computer 
literary project and manufac- 
tured by Cleartone. 

Then, at the beginning of 
this month, AB announced it 
had secured a multi-million 
pound contract to supply elec- 
tronic control systems for the 
next generation of Jaguar cars. 

Both announcements reflect 
. credit, on a Welsh-based com- 
pany, which was in the elec- 
tronics manuf acturing business 
long before electronics became 
a household word. 

AB Electronics Components, 
as it used to be called, moved 
down to South Wales from 
Hounslow In 1950 because its 
original factory was being 
demolished to extend a -Heath- 
row runway; The Board' of - 
Trade persuaded what was then 
a family-owned business em- 
ploying only 100 people to 
transfer to a 25,000 sq.ft war- 
time shadow factory at 
Abercynon, /.in. the : heart, of 
Glamorgan coalmining valleys. 


The family Itself was not 
keen, to leave London and 
within a few years the business 
was sold to a holding company. 
But this did not work out and 
by the early 1960s, when Mr 
Henry Kroch, the present 
chairman and managing direc- 
tor, took over the running of 
AB, it had just been floated off 
as an independent public com- 
pany.- His first objective was to 
reduce AB’s reliance on the 
highly competitive consumer 
electronic components market 

The company’s initial suc- 
cess has been built up on radio 
and then TV components. It 
manufactured mainly switches 
and variable transistors in very 
large quantities and therefore 
rock bottom prices for the 20 
British TV manufacturing com- 
panies which made up the 
British television industry in 
the 1950s and early 1960s. 

But Mr Kroch says it became 
a fool’s game because consumer 
electronics was one of the 
industries used by successive 
governments as a regulator for 
the economy. “There were 47 
fiscal changes affecting credit 
terms in 25 years, making it 
impossible to plan economic 
production. One minute we had 
surplus capacity because of 
credit restrictions and insuffi- 


cient ‘ capacity the next, as 
credit was eased." 

This boom and bust environ- 
ment, Mr Kroch says was an 
important reason why first the 
Japanese and then other Far 
Eastern producers gained a 
foothold in the UK market and 
then proceeded to gradually 
take it over almost completely. 


Diversifying 


So Mr Kroch began a policy 
of diversifying into the produc- 
tion of components for other 
industries, and AB prospered. 
It expanded into three other 
government factories .on the 
same estate and then bought the 
whole 23-acre site. Factories 
were opened in the neighbour- 
ing Rhondda Valley and then 
on the Continent, near Dort- 
mund, West Germany. Compo- 
nents were being supplied in 
particular to the rapidly 
developing data processing 
industry with IBM becoming 
AB's biggest customer. 

In 1977, the company changed 
its name to -Electronic Products 
Group. The change represented 
more than just -fashion. AB's 
board decided to reshape the 
company’s activities by gradu- 
ally moving away from just 
making components into two 


“ upmarket " sectors— electronic 
instrumentation and electronic 
systems. 

Towards this end AB soon 
acquired an electronics systems 
company in Camberley, Surrey, 
which was in the hands of the 
receiver and proceeded to put 
it back on its feet. Today 
Kenure Developments is a suc- 
cessful subsidiary venture, pro- 
ducing electronic systems for 
the defence and aerospace 
industries and for the Post 
Office. 

Two years ago, AB purchased 
another company from the 
receiver, this time in the Isle 
of Wight Electronic Systems 
(IW) was reorganised and is 
now again doing well under the 
direction of the top manage- 
ment at Camberley. AB has 
also recently opened an Austrian 
subsidiary specialising in the 
manufacture of thick film 
microcircuits. 

Thus, the Cleartone acquisi- 
tion is very much in line with 
the company’s longer-term 
strategy. And Mr Kroch also 
has good reason to be confident 
that AB has the management 
expertise required to turn 
Cleartone around. 

It has not been all plain 
sailing for AB itself. The reces- 
sion forced the company to 


move out of its traditional com- 
ponents business more rapidly 
than it had originally planned. 
The workforce at its Welsh 
plants have been reduced by 
nearly 1,000 over two years, a 
cutback which Mr Kroch says 
was very distressing to him 
personally and which, because 
of high redundancy costs, 
pushed the company’s belance 
sheet in to deficit 

But the Jaguar deal marks 
a turning of the employment 
tide for the company* as ' well 
as a major diversification break- 
through. It will create 130 new 
jobs at Abercynon and boost 
group sales by at least £3m 
to £4m a year. 

The precise nature of the new 
system is .being kept secret It 
is described as “an advanced 
electronic system of driver- 
operated controls.” It was 
developed by AB at Jaguar’s 
request and the motor company 
was so pleased with the result 
that it was awarded the pro- 
duction contract to AB as well. 

But this is only one of a 
number of exciting irons that 
AB has In the fire. The com- 
pany prospered in Wales in the 
1950s and 1960s. It now shows 
every sign of doing so in the 
far more difficult climate of 
the 1980s. . 


Hie 

zero Problem 


■s* 

•f 

| ■£■ 

Tl. 



! f 

i 

i 

) 

i 

1 


WETTERN AND WALES 

rm happy to taka this opportunity to saluta the 
Welsh Development Agency. In 1975 a new 10,000 5fJ. ft 
advance factory at Rhyl was tassad trom tha WJXA- to the 
former ownors of our company. 

In January this year, I completed negotiations for tha 
purchase of (fra Him. Earlier I had recognised Via potential 
of our product and concluded that strong management was 
tha only thing needed to make us a "world beater? 

We ere now well on Ore way towards that goal 
The co-operation from As VV.DA.Aas been superb. 

ROBIN NICHOLAS 
MANAGING DIRECTOR 


WETTERN ELECTRIC LTD. 
CABLE JOINT ENCAPSULATION 
LV/MV SYSTEM 


-will ensure continued reliability under extreme service 
condition S-Tested to demanding criteria dictated by 
the Electricity Counci l. and Cable Manufacturers 
sseciffcation,tfie WETTEBN electric cable joint 
ENCAPSULATION LV/MV SYSTEM is specified by local 
authorities, oubilc utilities and contractors because of 
cflsdnct advantages over otiw methods of cable Jointing, i 
A fun range of kits are -available covering-, service/service, I 
mafns/servlce.and ma toss breech Joint configurations. 

•impact resistant. 

• compound stablllty-at extremes of temperature. | 

• Simple compound in)ectton.No mixing required, 
•safe and non-trazardous. 

•Indefinite storage life. 

•Joint can be re-entered to increase service cable 
connections. 

•Economical unit and labour cost 

• immediate back-fliL 
•Technical liaison back-up service. 


For technical information contact 



WETTERN ELECTRIC LTD., 

MARSH ROAD, RHYL, NORTH WALES. Telephone: RTyl 31603 .Telex :61586 



How does that 
attract you? 

For every person that lives In 
Wales, nearly five visit it each year. 
Around a million of our tourists 
come from overseas, the rest from 
other parts of Britain. 

Between Them they spend the 
staggering sum of over 5500 
million pounds in the Principality. 

It’s not just the sheer sizp of 
the market that makes tourism in 
Wales such as a uniquely 
attractive industry to invest in. 

Equally important is the 
practical assistance which the 
Wales Tourist Board can offer to 
potential investors both big and 
small. 

Expert advice in helping to 
identify opportunities and in 
locating suitable sites. 

Financial assistance in the 
form of grants and loans. 

Plus the back up of 
continuous marketing and 
advertising promotions for Wales 
both in Britain and abroad. 


Whatever your project come 
and talk to us about it And for 
further information send for our 
free brochure Wales - The Tourism 
Connection’. 

growth 
Industry in Wales 

^To Development Director, Wales Tourist Boa^^ 
9 Brunei House, 2 Fitzalan Road, Cardiff. CF2 1UY 
“ Please send me your free brochure with more 



I information about investment opportunities 
tourism in Wales. 

| Name - 

| Address 

I 


Feeling bound by hig h interest rates, high rents and lack of space .to 
develops Don't worry, you can move. 

To Cwmbran, the bustling new town in Wales. Where the air is 


Successful companies like Ferranti and Data Type Teiminals are already 
here. There's a large and enthusiastic skilled workforce. And we're dose 


another industrial development. Llantamam Park. 

We've factory units from 750 sq. ft. to 12,000 sq. ft. and larger. 

Serviced sites, ideally suited to electronics andhigh-tcch companies are to major roads, rail links, docks and aiiport. 
dean, die sunlight pure, the people friendly. Cwmbran is a great place also available. And we've a package of grants and incentives that will For more infonnation, send us the 

to get things done- and a beautiful place to live. give you relief from today's fin a n cial pressures. With help from the coupon today. Or simply ring us for 

Business our way is so successful, we've had to expand-creating CDC in full co-operation with the Borough of Torfaen always on hand. ■ an appointment 

CWMBRM WELCOMES BUSINESSMEN WHO ARE fflllNO TIED DOWN 





To R/vV. Hewlett, Managing Director, 
Cwmbran Development Corporation, 
Gwent House, Town Centre, 
Cwmbran, Gwent NW4 1XZ. 

Please wnd me Te * : Cwmbran 67777, 
your industrial information 
parit, and details of the grants 

and incentives you can give me. — Vi FT30 


Cwmbran V 

Business succeeds our way, 







14 


Financial Times Friday July 9 1982 



The Fibreglass 
factory at Pont-y-felin 
Torfaen, is the 
largest insulation 
production unit 
in Wales, servicing 
the needs of the 
Principality, and of 
the Midlands and 
Southern England. 


->=aO C:--- 

Fibreglass 

the best way to say insulation 


Fibreglass Limited 
Croesyceiliog Cwmbran Gwent 



30% wage subsidy on new manu- 
facturing jobs ? Hew factories 
for £20 per week including rates 
- or even less? IH TORFAEH- 
where else ? 


The Borough Council offers in the Eastern Valley of Gwent 
the first (and only) local employment subsidy in Wales for 
council factory tenants. \ 

Twenty-seven unit factories of various sizes being built-now 
at Pontypoo! and scheduled for completion March 1983 on 
attractive estate with proven track record of success for 
new and expanding companies. 

Rent free periods up to two yean, all development area 
Incentives, extra European aid and Welsh Development 
Agency support enable the Council to offer a powerful 
package. 

Demils from: 

S. L. Haynes 

Deputy Town Clerk (Estates) 

Borough of Torfaen 

Council Offices, Pontypool, Gwent NP4 4YB 
Tel: (049 55) 2471 Ext 287 


Ovvyd believes 

in tourism and its future the 

opportunities are here now ! 


The County of Owyd In North 
East Wales has been rn tourism 
from the start. Now it is poised to 
cash In on the new growth 
markets. 

Already new Inve s t me nt s are 
appearing. The 'indoor tropical 
island” of the Rhyl Suncentre. a 
new leisure c en tre at Cotwyn Bay 
and a major craft centre at Ruthin, 
to name but a few. 

Ctwytfs excellent motorway 
connections make It eagr for the 
British holidaymaker to reach our 
County, and within an hour of 
landing at Manchester Inter- 
national Airport overseas 1 
visitors can be to Owyd. 

We actively support 
investment m 


accommodation and leisure 
facilities, not only far tourism 
but also for "aH - year - round - 
amenities to save our growing 
population and the business 
visitor to tin rapidly expanding 

modem Industrial scene within 
Owyd. 

lAte'd Hte to help you become 
part of Qwyd*s successful tourist 
industry. 

To find out more about sites 
and financial incentives, contact 
Wayne S. Morgan, County 
Industrial Officer, Ovvyd County 
Courted, Shin Hafl, Mold. 

OwytLTel Mold 
(0352)2121. 
latex 
61454. 



-aftfrepeafcof W Welsh potentktlm 


BUSINESS RELOCATION 
SERVICES 

Total Project Management of Business Relocation, from 
selection of premises right through, to commissioning of Plant 
and Equipment in the new factory. 

U your company is considering relocation, contact: — 

Eric Damagnez on Storehouse (045382) 3535 or write to 

PM INTERNATIONAL 

" Tregenoa,** Marsh Lane, Leonard Stanley, Stouehousei 
Glos. GL10 3NJ 

for full details including case studies. 



The Parliamentary by-election in Gower is likely 
to have a decisive influence on Welsh politics. 

First test of views since 
1979 referendum poll 


THE IMPENDING by-election in the ' 
Gower constituency, near Swansea, 
promises to be more than of just passing 
significance. It is not just the first 
Parliamentary by-election in Wales for 
10 years bnt, perhaps more important in 
the Wdsh context, the first since the 
1979 Devolution Referendum and 
General Election. - 

The blunt referendum rejection of 
the last Labour Government’s plan for 
a devolved Welsh Assembly, followed 
two months later by the biggest Con- 
servative vote in Wales for a century, 
were major shocks. 

They brought to an abrupt end a 
decade in which the Welsh political 
agenda had been dominated by the 
pressures and influences of Celtic 
nationalism from Scotland, as well as 
Wales itself. 

The Falkland^ conflict has already 
upset recent political calculations and — 
depending on when the by-election is 
called as no date has been set yet — 
may still exert a significant influence. 

■ Nevertheless, Gower provides the 
first opportunity for tills Parliament to 
test how a not-unrep res enta five Welsh 
industrial constituency views the Govern- 
ment’s track record over the past three 
yean, plus the upheavals in Wales’s 
traditional “ national ” party, the Labour 
Party, the rise of the Social Democrat- 
Liberal alliance, arid the recent shift to 
the left of the Welsh Nationalist Party, 
Plaid Cymru. 

After such a long period without a 
Westminster by-election in Wales, what 
is the current mould of Welsh politics, 
let alone whether the mould has been 
broken ? The outcome is likely to have 
a decisive Influence on the direction of 
Welsh politics, in the run up to a general 
election and beyond. 

On past performance. Labour should 
have no difficulty in holding the seat At 
the last general election, Mr If or Davies, 
whose death last month is responsible 
for the by-election, had a majority of 
10,641 votes, or 23 per cent over the Con- 
servatives, in a four-cornered fight But 


in 1979, the Tory vote was far higher 
than usual. In the previous 20 years, 
Mr Davies had enjoyed majorities which 
were half as big again. 

The result may have been exceptional. 
But it .Is also the case that Wales’s 
legendary allegiance to the Labour Party 
has been gradually weakening. 

In March 1966, Labour held 32 of 
the 36 Welsh Westminster seats. 

With the deflection of three of its 
Welsh MPs to the Social Democrats, and 
the elevation of Mr George Thomas, MP, 
as Speaker, Labour these days is down 
to only 18 seats — half the earlier total. 
And apart from one MP in North Wales, 
Mr Barry Jones In East Flint, and Dr 
Roger Thomas in Carmarthen, Labour’s 
representation in Wales is now confined 
to the South Wales industrial belt. 

In these circumstances. Labour needs 
a Gower result which not only confirms 
that its Welsh heartland remains secure, 
but also that it can, look forward to re- 
capturing Wash ground lost in the past 
decade. 

There is no reason why its supporters 
should he frightened off by local factors. 
Although neighbouring Swansea featured 
in Labour’s recent investigation into the 
activities of the Militant Tendency, Mr 
Alan Williams, Swansea West’s moderate 
Labour MP, had no difficulty in securing 
his re-selection against a militant 
challenge. 

Mr Gareth WardeU, the Labour 
candidate for Gower, who is a 37-year-old 
economic geography lecturer, is not a 
member of any faction and the Labour 
Party in Wales , generally remains over- 
whelmingly in the hands of the moderate, 
old guard. 

. On the other hand, the Social Demo- 
cratic Party needs to win Gower, or at 
least run Labour a dose second, if the 
Alliance is to establish itself as a serious 
force in Welsh politics, as wen as regain 
its momentum nationally. 

Mr Gwynoro Jones, the SDP candi- 
date, is already well known locally. He 
was Labour MP for Carmarthen between 
1970 and October, 1974, and, at one stage. 
Parliamentary Private Secretary to Mr 


Roy Jenkins, one of* the SDP founders. 
Mr Jones switched to the SDP shortly 
after failing to win the Labour nomina- 
tion for Gower. 

The Gower peninsula itself is-.a Con- 
servative stronghold, but- - the con- 
stituency extends deep inland to the 
TniniTig and industrial communities of 
the anthracite, coalfield and the Swansea 
Valley — the kind of seat where a Con- 
servative victory would have been 
regarded as unthinkable only a few years 
ago. But in 1979, Mr Trefor Llewellyn, 
a 35-year-old accountant who is also the 
candidate again this time, bumped up 
the Conservative share of the vote from 
20 per cent to 30 per cent This is a 
very solid base from, which to mount a 
serious challenge and even win the seat, 
given that it wDl be a four-cornered* 
fight. 

It was the byelection campaigning 
skills of Plaid Cymru, the Welsh 
Nationalist Party, which gained the party 
its first Westminster' seat in the mid- 
1960s— and came within an ace of un- 
seating Labour in two South Wales 
valley strongholds, Rhondda and Caer- 
philly. 

That was, of course, before the 
crashing 41 no ” vote of the Devolution 
Referendum in Wales, which stopped the 
Nationalist bandwaggon in its tracks. In 
its efforts to recover momentum. Plaid 
has moved uncompromisingly leftward, 
with its annual conference last year 
adopting the setting up of a- Democratic 
Welsh Socialist State as the party's 
objective-father than amply self- 
government. 

Should tiie new stance fail to have 
any impact; the right wing in Plaid may 
well seek a return to ** traditional 
nationalist philosophy," creating the 
kind of conflicts which have* broken out 
recently in the Scottish National Party. 

But in the meantime. Plaid’s political 
opponents retain a healthy respect for 
its capacity to mobilise its troops for by- 
elections and, in a seat like Gower, it 
could still have a decisive influence on 
the result 



WAI 


SianelPedwarCymru 



A NEW testcard is to .be seen 
on television screens in many 
parts of Wales these days 
towards the bottom of which 
are the in i tials iBA:l.S4€. It 
represents the first visual 
sign on the screen at last of 
tiie major changes in Welsh 
television which are due. to 
burst on to the screen this 
autumn. . 

S4C stands for Sianel 4 Cymru 
—literally, . . . Channel Four 
Wales— -a 2Munir per week 
television . 'service in the 
Welsh language! The service 
waH begin broadcasting in 
Wales 24 hours before the 
Channel Pour service begins 
in "the rest of the UK. 
Seldom, -if ever* can a tele- 
' vision service have been the 
subject of such a long drawn 
out . and .fierce political 
battle. . 

It lasted^ more than a .decade, 
involved dozens of Welsh 
language. . activists going to 
gaol for damaging TV trans- 
mitters, and only finally suc- 
ceeded when the veteran 
Welsh Nationalist leader, 
Gwynfor Evans, threatened 
to go on hunger strike unless 
the present government kept 
its manifesto promise to 
establish a Welsh channel. 
The upshot was the setting up 
by the Government of a 
Welsh Fourth Channel 
Authority, a .statutory body 
with the status -of the BBC 
and Independent Broadcast- 
ing Authority, to co-ordinate 
the Welsh language service on 
the fourth channel in Wales, 
around which it would also 
schedule the English Fourth 
■Channel output being broad- 
cast to the rest of the UK. - 
The new authority was faced 
with the formidable task of 
getting the new service on the 
air in less than two years. 
The Government showed some 
wisdom in appointing Sir 
Gorouwy Daniel as chairman. 
He was already uniquely ex- 
perienced in the art of start- 
ing a major new enterprise 
from scratch .having come 
down to Cardiff in 1964, from 
the Ministry' of Power in 


Rapid progress 



on 


TV channel 


London, to create and head 
up the Welsh. Office as its 
first Permanent Secretary. 

Soon after his appointment. Sir 
Goronwy told an askance 
Commons Welsh Affairs 
Select Committee that he did 
not know anything about 
television. But this was more 
than compensated for by the 

• decision of Mr Owen Edwards, 
head of BBC Wales for the 
previous six years, to accept 
the challenge of the new 
channel -and become S4C’s 
Director and Chief Executive. 

Rapid progress was also helped 
by the inclusion of the Welsh 
members of the BBC and IBA 
on S4C’s governing authority, 
as well as the Principality’s 
representative on the Fourth 
Channel hoard. 

S4C will not produce its own 
material, apart from con- 
tinuity inserts, but will 
schedule the Welsh service 
from three programme 
sources. BBC Wales will pro- 
vide 10 hours a week, paid 
for out of the normal TV 

- licence fee revenue, and at no 
cost to the authority. 


Challenge 


THE BBC’s contribution will 
indude S4C’s news service — 
an hour-long programme of 
local, national and interna- 
tional news in Welsh each 
night, a new challenge even 
for the BBC. 

Wales's commercial contractor, 
HTV, will provide a further 
7-9 hours. 


After long draw n-out negotia- 
tions with S4C HTV has just 
concluded a contract worth 
more than £100m with the 
Welsh authority, covering the 
terms for programmes to be 
supplied over the eight y&ais 
of its present broadcasting' 
franchise from the IBA 

The deal als o p rovides the 
collateral for HTV to go ahead 
with tiie construction of a 
major new studio complex at 
Culverhouse Cross on the out- 
skirts of. Cardiff. The com- 
pany has already recently 
established new studio facili- 
ties at Mold, North Wales, and 
Carmarthen, West Wales, 
which will also aid program- 
ming for the new channel. 

The remaining programmes for 
the S4G Welsh service will 
come from independent pro- 
ducers. One of the arguments 
used against having a separate 
Welsh service was that few 
independent producers, it was 
said, would be interested in 
malting Welsh programmes. 

In the event; there has been 
an explosion of new enter- 
prises launched in many cases 
by experienced Welsh broad- 
casters who were amply wait- 
ing for the opportunity to 
have a go on their own. Others 
are not Welsh at all,- but have 
found S4£ easier to deal with. 

At the last count S4C had con- 
tracted programmes from 
over 30 independents and 
while it expects some to fall 
by the wayside, the founda- 
tion of a strong Independen- 
dent sector has been laid. 


According to Sir Goronwy 
Daniel, independents are in 
the process of creating 300 
to 400 -jobs, many -of them 
-in rural areas. 

One company, Barcud, has been 
established- hr - Caernarfon, 
.North Wales, with the help 
of the Welsh Development 
Agency, specifically to hire 
outside broadcasting equip- 
ment to independents. Its 
facilities are being described 
by the professionals as “the 
best outside London.”. 

The BBC and HTV have also 
been recruiting heavily in 
order to gear up for the needs 
the new channel. The BBC 
has taken over the former 
headquarters bonding of tiie 
British Steel Corporation’s 
Welsh Division— -a symbolic 
change of use, indeed, given 
the recent pattern of events 
in Wales. 


Revised recommendations from 
the Boundary Commission 

THE boundaries (indicated above) for counties 
of Dyfed, Gwent, Mid Glamorgan, Powys and 
West Glamorgan are the revised recommenda- 
tions of. the Boundary Commission for Wales, 
announced yesterday, following the holding of 
local. inquiries. 

In Gwynedd and Qwyd, local inquiries have 
been held and revised recommendations will be 
made at a later stage. 

A local inquiry affecting boundaries in South 
Glamorgan is due to begin next week. 



Method 

S4C is being financed by a levy 
subscription, on the commer- 
cial TV network negotiated 
with the IBA— the same 
method which has been em- 
ployed to finance the launch- 
ing of Charnel Four UK. 
However, S4C is not in the 
position where it can look 
forward to being ultimately 
self-financing, because of the 
size of its audience.- There 
are only some half a million 
Welsh speakers.- 
That said, S4C is determined to 
maximise earnings from mer- 
chandising opportunities — 
creating more jobs in Wales 
• into the bargain— and from 
world-wide sales of its inde- 
pendent sector programmes, 
dubbed into other languages. 
To this end, S4C has agreed an 
exclusive contract with Trans 
World International, the tele- 
- vision subsidiary of the Mark 
McCormack marketing agency, 
and their, joint endeavours in 
this direction have already 
produced a -very encouraging 
response from the" inter- 
national television market 



Above: St David's EaR, Cardiff , the national concert 
and' conference had which opens . this autumn. 
Facilities include a 2,0'00-Seatauditormm. Left: 
Oiarmel Four Woles’ announcers tfotoena Jones- 
Thomas (seated) and Sian Thomas. The new 
service is due to reach the screens m mtiumn too 


FORTHCOMING 
REGIONAL SURVEYS 

South West England \ 

Publication date 17th September 

Gwent 

PubHeatioii date 24th September 

Birmingham & West Midlands 

Publication date 19th November 

Cardiff 

Publication date 24th November 

Glwyd 

Publication date 2nd December 

If .you would like to receive a copy of the 
editorial synopsis or information on adver- 
tising costs - please contact: 

FINANCIALTEMGES 

EUROPE’S BUSINESS NEWSPAPER 
Paul Jefferis 
. The Financial Times 
George House - Geoige Road 
Edgbaston - Birmingham' 
Telephone 021-454 0922 


wuss 

cawaDONciL 

QngoKfeffl^mw 

. «-fbr retailers , Wholesalers and Exporters in 
local , and international markets. 

Promotion f Market in g and Information Services 
.On craft products » giftware and fashion goods 
- tor tiie craft SndustryiaWalesv 

; Wafes Qriaft Council , 

Box Ladywcli House , Newtown , Poww, 
5Y16 1EH . telephone (068£) 27273 • 

VALES CRAFT COUNCIL ' 
—wodtiog to provide opportunities for those 
- working to succeed = ■ 



OarttfadStenfoii 

. BtabApota FttafaSihed *28 

CARDIFF . 

Prostfet Afr-Cowftttawn! Ilfflse* 

to-let . 

4,100 to 35^856 'Square Feet 

•v. at.-. 7. . i 

PEARL ASSURANCE HOUSE : 

S High Street Cardiff Tel? 10222) 40244 





.1 ——X-':. 




Financial Times Friday July 9 1982 



BBC 1 


8.40 am-Open XJnfvorsity. lO.5d. 
Cncket: Third Test The Cora- 
hill Insurance Test Series. . 
England v India from the Oval. 
1.05 pm News. Weather. 1.32 
Regional News for England (ex- 
cept London) London and SE: 
Financial .Report. 1 .35 Bod. 1 JO 
International Golf: The Slate 
Express Classic from The Belfry. 
■i.IS Regional News for England 
■{except London). 420 Play 
School, 4.45 Jigsaw. 5.10 Play- 
house. 

5.40 Evening News, Weather* 
man. . . 

6.00 Regional News Magazines. 

6.25 Nationwide. 

6J0 Kopje — A Rock For All 
Seasons. Granite islands 
set in the Serengeti's pol- 
ling ocean of grassland. 

7.40 It: Ain’t Half ■ Hot Mum. 
starring Windsor Davis. 

8J0 It's A- Knockout from 
Lochgilphead in Argyll 
and Buie. 

9 JO News, Weekend Weather. 

9*25 Cagney and Lacey (new 
. senes)! - A film series 
- about two women police 
officers. 

10.15 Leap in' the Dark. 

M.45 News, Weather. 

10.50 The Late Film: “Wild in 
the. Sky,*-*- starring Bran- 
don de Wilde and Keenan 
Wynn (1972). 


TELEVISION 

1 bnight’s Choice 

„ . second helping of Noel Coward in a week A song at twi- 
a of „ a surprisingly strong nights viewing. It stars 
Paul Scofield as a Somerset Maugham Character, a writer trying 
to live down his past, helped by Deborah Kerr. Earlier on the 
same channel, BBC 2, John Eatwell goes back -to the' 19th century 
to discover why the country, is in an economic mess in Whatever 
happened to Britain? ft is encouraging that historians reckon 
that the UK. peaked around 1850. This is followed by The sacred 
mines Tamil Nadu, -which fits in nicely with ' the current 
Festival of India. 

. ^ “itches this with a new series. Rep, about the fortunes 
of a mall theatrical company at Lytham Sr Anne's in 1948 and 
Simon and Gaxftukel in Central Park, the reunion concert of the 
dulcet voiced duo after an eleven year gap. 

. . weighs in with a new series, Cagney and Lacey, 

which looks like another attempt to sell an American female cop 
to a sceptical audience. The fact that this time there are 'two 
lady gunslingers might just tip the scales at 9.25. Leap in the 
Dark, the last of seven stories- about the supernatural will send 
many people nervously to bjed at 10J.5. 

ANTONY THORNCSOFT 


BBC 2 


&40 am Open' University: 

10.30 Play School. 

•1.35 pm Cricket and-- Golf: 
6-35 Lanrel and Hardy in 
• ■ 'Helpmates. . 

6.55 Sts Fifty-Five Special. 

. 7.25 News, - Weather. 

7.30 Gardener’s World. 

- 7J55 Whatever Happened to 
Britain? 


8-20 Bird Spot: Woodpeckers. 

8- 30 The Sacred Horses of 

Tamil Nadu. 

9- 00 Playhouse: A Song at 

Twilight; by Noel Coward. 
10.25 Cricket: Highlights. 

10-50 Newsnight. 

1L30 International Golf: High- 
lights. 

12.00 Open University. 


LONDON 


9 JO am ' Dick Tracy "Cartoon. 
9.35 The Greatest Adventure. 
I0J5 Time Flies, starring Tommy 
Handley. 12.00 - Winceys’ Pets. 
12 JO' pm Once Upon A Time. 

12.30 Sudden Change. LOO News. 
L20 Thames News. 1-30 About 
Britain. 2.00 Not for Women 
Only. 2L25 Racing from York. 
3.45 Current Strokes. 4.15 
Speedy and Daffy. 4-20 Dance 
Crazy. 4-45 Freetime. 5.15 Film 
Fun with Derek Griffiths. 

5.45 News. 

6.00 The Six O'CIock Show. 

7.00 Winner Takes All, pre- 
sented by Jimmy Tarbuck! 

7J30 Magnum . . . The Jororo 
Kill, starring Tom Selleck. 

8 JO Rep, starring Iain Cuth- 
hertson. Stephen Lewis 
and Patsy Rowlands. 

9.00 On the Line. 

10.00 News. 

10.30 Paul Simon and Art 

Garfunhel — the Concert 

in Central Park. 

12.10 am Rawhide . . . Incident 
at the Buffalo Smoke- 
house, starring Clint 
Eastwood. 

1.10 Sit Up and Listen. 

Because of the World Cup 
coverage programmes will be 
subject to alteration. 

■f Indicates programmes in 
black and white. 


AH IBA regions as -London 
except at the following times: 

ANGLIA 

9-SO am The Amazing Yaira of 
Ciortna. 10.06 Lika as tha Luta. 10.45 
Poetry of Landscape. 10.55 Portrait ol 
-a Village. 11 JO Alpha bat: tha Story of 
. - Writing. 11.50 Wanoo, Wattoo. IJOpmi 
'-Anglia News. 3.4S Hands. .7.30 Tha 
■fPiil Guy. BJO Rep. 10.00 Naws at Tan. 
rfnllbwed by Anglia . Lata Newa and 
i- Weather Foracaat. t1Z-1D am Friday 
La 19 Film. 1-20 Indian Journey. 

CENTRAL 

S.56 am Wild. Wild World or 
Animals. 10-20 Gardening Tima.' 10.45 . 
Fangriaca. 11.06 History of tha Grand 
Prix. 1US Thijs Van Leer. 1.20 pm 
.Central Nawa. 3.45 Thraa. Little Words. ' 
G.00 Central Nawa. 12.10 am Cantral 
Nawa. 

GRAMPIAN 

9.30 am Rrst Thing. 9.35 Sesame 
Street. 10.35 Call It Macaroni. 11.00 
Thundarbtrda. 11 JO Tha Adventares of 


Parsley. 1.20 pm North Nawa. &00 
Summer at Six and Area Weather Fora- 
-cast. BJB Dlff'rant Strokes. 12.10 am 
North Headline^ and Ana Weather 
Foracaat. 

GRANADA 

9.39 am An Outline History of Europe. 
9.50 Stingray. 10.15 Last of tha Wild. 

10.35 The Base hcom bare. 11.00 Sesame 
Street. 1.20 pm Granada Reports. 3.45 
The Wild, Wild Worfd of Animals. 6.00 
Janglaa. 6.30 Granada Reports. 12.10 
am Tha Lata Film. 

HTV 

9.56 am Early Morning Picture Show. 
10.20 Tha New Accelerators. 10.45 Tha 
Flintatonas. 11.10 Tha Flying KJwi. 

11.36 Crazy World of Sport. 1.20 pm 
HTV News. 3.45 Wild. Wild World of 
Animals. 6.00 HTV Naws. 6.30 So 
What's Your Problem? 10.28 HTV News.. 
10J0 Simon and Garfunkal in Concert 
in Central Parfc. 12.10 am Weather. 

HTV CYMRU/ WALES— As HTV WEST 
except: 10.20 am Paimaratown U.S-A. 

12.00 Bath Am 5tori? 4.15 pm Helwyr- 
Okavango. 8,00 Y Dydd. 6.15 Rapou 
Wales. 6.30 Mork and Mindy. 10.30 
Llangollen '82. 


SCOTTISH 

10.00 am Spread Your Winga. 10.25 
Nova. 11.15 Adventures of Black 
Beauty. 11.40 Fangfaca. 1J20 pm 
Scottish News. 3.46 The Flying- Kiwi. 
5.15 Llghttl Camera I Annie. 6.00 Scot- 
land Today. 6 JO Happy. Days. 19.00 
News at TBn and Scottish Nawa Head- 
lines. 10.30 Ways and Means — Colin 
MscKay. 11 JO Lata Call. 

TSW 

9 -25 am Sesame Street. 10.25 Comic 
Stories. 10.40 Clapperboard. 11.05 Tha 
Extraordinary People Show. 1130 Fang- 
faca. 11.55 Look and 'See. 130 pm 
TSW Regional News. 5.15 Gus Honey- 
bun’s Magic Birthdays. 5.15 Lights! 
Cameras! Annlel 6.00 Today South 
West. 6.30 What’s Ahead. 730 Han 
to Han. 10.32 TSW Lata News and 
Weather. 12.10 am Postscript. 12.15 
South VVast Weather and Shipping 
Forecast. 

TVS 

SJO am Our Incredible Worfd. 10.00 


Amazing Years of Cinema. 10-25 Comic 
Stories. 1030 European Folk Talas. 
10.40 Clapperboard. 11.05 Extraordinary 
People Show. 11.30 Fangfaca. 130 pm 
TVS Naws. 3.45 At Home with tha 
Spinners. 5.15 Ughul Camara I Anniel 

6.00 Coeet to Coast. 6.30 DifTrant 
Strokes. 12.10 am -Barney Miller 
Inquisition.. 1235 Company. 

TYNE TEES 

9.20 am The Good Word. 9.25 North 
East Raws. 9-30 The World We Live 
In. S-66 Hannah Barbara Classics. 

10.45 Fashion -Today. 11.00 Sesame 
Street. 1.20 pm North East Naws and 
Lookeraund. 3.45 Bailey's Bird. 4.15 
Cartoon Time. 6.00 North East News. 
6.02 The Real World. 630 Northern 
Life. 1030 North East Nawa. 12.10 
Killing time. 1230 am Epilogue. . 

YORKSHIRE 

930 am Sesame Street. 1030 Wild. 
Wild World o> Animals. 1035 It's a 
Musical World. 11.40 White Water 
Fury. 11.55 Tha Undersea Adventures 
of Captain Namo. 130 pm Calendar 
News. 346 By nones. 6.00 Calender. 
630 Different Strokes. 12.10 Lata 
Night Drama. 


(S) Stersobreadeast (whan 
. broadcast on VHF> 

RADIO 1 

6.00 am As Radio 2. 7.00 Slava 

Wright. 9.00 Simon Bates. 1130 Dave 
Lae Travis Including 1230 pro News- 
beet. . 2.00 Paul Burnett. 530. 

Nawabaat. 6.46 Roundtable. 7.00 
Andy Paables. 10.00 Tha Friday Rock 
Show (S). 

RADIO 2 

5.00 am Ray Moors (S). 730 Tarty 
Wopan (S). 10.00 Jimmy Young IS). 

12.00 Gloria Hunnlford fS) including 

1.45 pm Spoils Desk. 2.00 Ed Stewart 
(SV including 2.45/3.45 Sports Desk. 

4.00 David Hamilton (S) including .4.45 
Sports Desk. 5.45 Nows: Sport. 6.00 
John Dunn (S) including 6.45 Sports 
Oegb: 730 Cricket Desk. 8.00 Taka 

. Your Partners (S) at the Radio 2 
Ballroom with Sydney Thompson antt 
hie Orchestra.- 8.45 'Friday -Night is 
Music Night (S) with'Ths Solent Con- 
cart Band.- 935 Spon* Desk. 1030 


RADIO 


Roy Castle in " Castle's In tha Air." 
1030 Alistair Cooks. 11X0 Brian 

Matthew with Round Midnight. 1X0 

am Night .Owla (S). 2.00-5.00 You 

end the Night and the Music (S). 

RADIO 3 

. 835 anil Weather. 7X0 News. 7X5 
Morning Concert (S). 8.00 News. 

8.06 Morning Concert. 9X0 News. 

9.05 This Week’s Composer* (S) 
William -Schoman and Walter Piston. 
10X0 An Aquatic Miscellany JS) Song 
recital: Schubert Britten. Ireland, 

Kaal. 1035 Respighi (S) - Concert 
12X0 Music for Lut* fS) Dqwiand. 
Philip Rosseter. 1230 pm Midday 
Concert (S) Part 1: Elgar. Bartok. 1.00 
News. 1.05 Midday Comarr (S) Pan 
2: Dvorak. .130 Haydn Plano Sonatas 
(S). 2.40 Bn rim Philharmonic Orch- 

estra (5); 4X0' Offerer Evensong ’ (S) 


in St Thomas's Church. New York; 
USA. 4X5 Naws. 6.00 Mainly for 
Pleasure (S). J 630 Music for Guitar 
(5). 7.00 Dog on Front Page. 730 

Falstaff (S). 8.15 My .Merry Mornings. 
8.40 Fslsuff (S) Act 2. 935 Nonsnnse 
Novels. 10.90 Falsteff (S) Act 3. 10X5 
Schumann (S). 11.S6 Naws. 

RADIO 4 

6.00 am Naws Briefing. 8.10 Farm- 
ing Today. • 635 Shipping forecast. 
6.30 Today, including 6.45 Prayer for 
The Day; 7.00. 8.00 Today's News: 
730. 8.30 News Headlines; 745 

Thought for The Day. 833 Yesterday 
in Parliament. 8.57 Weather; Travel; 
Continent*! Travel; News. . 9X6 Desert 
Island Discs (SJ. 9.45 A Sideways 
Look At 10.00 News. ' 10.02 Ground- 
BWtn. 10.30 Daily Service. 10.45 


Morning Story. . 11.00 Naws; Traval.. 
11.03 The Bantams. 11-48 Natural 
Select ion. 12.00 News. 12X2 pm You 
and Yours. 1237 My Music (s) Quiz. 
12X5 Wsather; Travel Programme 
News. 1.00 Tha World At Ons: News. 
1.40 The Archers. 1.55 Shipping Fore- 
cast. 2X0 News. 2X2 Woman's Hour. 
3X0 News. 3.02 Afternoon Theatre 
(5) " Scrape Of! The Black " by Tundi 
Ikoli. 4.00 News. 4.02 Countryside 
View. 4.10 Coping with Death. 4.40 
Story Time. 5X0 News Magazine. 
5.50 Shipping Forecast:' 5X5 Waathsn 
Programme News. 6.00 Naws. 630 
-Going Places. 7X0 Naws. 7.05 The 
Archers. 730 Pick of the Weak (SJ. 
B.10 The Week in Synod. 830 Any 
Questions? 9.15 Lenar From America. 
930 Kaleidoscope. 9X9 Weather. 

10.00 The World Tonight: News. 1036 
Weak Ending (S). 11.00 A Book At 

Bedtime. 11.15 The Financial World 

Tonight 1130 Today in Parliament 

17.45 Milan Kington wallows in th* 
BBC Sound Archives. 12X0 News: 
Weather. 12.15 am Shipping Forecast: - 
Inshore Waisrs Forecast. 


FT COMMERCIAL LAW REPORTS 


International patent fee must be in time 

IN RE ENERGY CONVERSION DEVICES INCORPORATED 

House of Lords (Lord Diplock, Lord Scaiman, Lord RoskiU, Lord Bridge of Harwich and Lord Brandon of Oakbrook); July 1 2982 

THE PATENT OFFICE has 
no power to override legisla- 
tion specifying time limits 
for payment of filing fees in 
respect of international 
patent applications, and if 
the fees are not paid within 
the appropriate period the 
applications most be taken to 
have been withdrawn. 

The House of Lords ’so held 
when dismissing an appeal by 
Energy Conversion Devices 
Incorporated, an American 
corporation, from a Court of 
Appeal decision that ttie 
assistant < comptroller of the 
Patent Office rightly decided 
that two international patent 
applications by the corporation 
should be taken to have been 
withdrawn. 

* * * 

Rule 100 of the Patents Rules 
1978 provides: “Any document 
filed in any proceedings before 
the comptroller may. if he 
thinks fit, be amended, and any 
irregularity in procedure in or 
before the Office may be recti- 
fied, on such terms as he may 
direct” 

Rule 110 provides: “(1) The 
. . periods prescribed by these 
Rules for doing any act . . . other 
thRn . . . periods prescribed in 
the rides specified in sub-rule 
(2) below . . may be extended 
by the comptroller ... (2) The 
rules referred to in sub-rule (1) 
above are rules . ■ - 85(1) (a) 

★ 

LORD DIP LOCK said that in 
order to simplify the obtaining 
of protection for inventions in 
several countries, the Patent Co- 
operation Treaty provided for the 
filing of international patent 
applications with the patent 
office of one of the contracting 
states (the “receiving office"), 
and for the designation of states 
in which protection was sought 
In the UK, section 89 of the 
Patents Act 1977 required the 


filing of an international applica- 
tion to be treated as an applica- 
tion for a patent under the Act 
the date of filing to be that 
accorded to it by the receiving 
office. The applicant was to 
satisfy specified conditions, 
which included paying a filing 
fee to the Patent Office. 

The Patents Rules 1978 
regulated the business of the 
Patent Office, and all matters 
which were under the direction 
of the comptroller. Rule85 
(l)(a) imposed time limits 
within which a copy of the inter- 
national application .must have 
been filed, and the filing fee 
paid. 

The consequences of failure to 
pay the fee within the prescribed 
period was that, under section 
89(3) of the Act, the applica- 
tion was to be taken' to have 
been withdrawn. 

In the* present case an 
American corporation filed two 
international applications for 
patents in the U.S. Patent Office. 
The time limit applicable for 
filing copies and paying fees in 
the UK was 20 months from the 
dates on which the corporation 
filed the applications in the U.S. 

The 20-month periods expired 
on November 8 and <16 197S. The 
corporation had not paid a filing 
fee to the UK Patent Office, nor 
given any intimation that it 
intended to proceed to .obtain 
the grant of a patent in the UK. 

The assistant comptroller 
decided that the corporation's 
international applications had 
been withdrawn. The corpora- 
tion appealed against that 
decision. ■ 

The Patents Rules provided in 
rule 110 for the alteration, by 
tfae comptroller, of some of the 
periods specified in the Rules; 
but it expressly provided that 
the time limit prescribed by rule 
85(lHa) could not be extended. 
The words were incapable of any 
other meaning. 


The - corporation contended 
that that prohibition might be 
overridden by the comptroller in 
the exercise of powers conferred 
on him by rule 100- It was con- 
tended that failure to act within 
a prescribed time limit was an 
u irregularity in procedure in or 
before the office,” which the 
comptroller might rectify by 
deeming the action to have been 
done before the tune limit 
expired. 

That was a hopeless argu- 
ment. An irregularity in pro- 
cedure was simply a failure to 
observe procedural rules, what- 
ever the cause of the failure 
might be. Where there was a 
discretion to rectify a failure, 
the reason for it might be of 
the utmost relevance. 

* ' 

If rule 100 conferred on the 
comptroller jurisdiction to 
excuse failure to observe an 
inextensible time limit on the 
ground that it was an irregu- 
larity in procedure, that jurisdic- 
tion must extend to all such 
failures, whatever their reason. 
That would render the express 
prohibitions of extension by rule 
llOflJ and (2) wholly nugatory. 

In Fa ter SpA's . Application 
[1979] FSR 647 Mr Justice 
Graham justified his grant of an 
extension of time on the ground 
that the power to rectify irregu- 
larities in rule 100 overrode the 
prohibitions of extensions con- 
tained in rule .110. As a matter 
of construction be was wrong. 

In the course of bis judgment 
he used an ill-considered turn 
of phrase. He said: “. . . the 
Patent Office is an office for 
granting patents and not for re- 
fusing them and in a special 
case such as this, when there is 
a conflict between two rules, they 
should, since justice demands it. 
as a matter ol discretion be read 
together in such a way as to aid 
grant rather than refusal." 

Because of the italicised 


phrase, that passage appeared 
to have been understood iu the 
Patent Office as meaning thijL 
there was a discretion to treat, 
the same words in the Rules or 
the Act as bearing different 
meanings iu different cases, 
according to whatever the officer 
dealing with the matter thought 
appropriate to achieve a just 
result 

To put an end. to any future 
confusion, their Lordships 
should take the present occasion 
to overrule that case unequivoc- 
ally. It was an important con- 
stitutional .principle that ques- 
tions of construction of all legis- 
lation, primary or secondary, 
were questions of law to be 
determined authoritatively by 
courts of law. 

Errors in construing primary 
or secondary legislation, made 
by tribunals that were not courts 
of law, were subject to correc- 
tion by judicial review. No tri- 
bunal and do court of law had 
any discretion to vary the mean- 
ing of the words of primary or 
secondary legislation in order to 
meet what it thought was the 
justice of the particular case. To 
do so was to negate the rule of 
law. 

If there were cases in which 
the application of the Patents 
Rules led to injustice, the curs 
was for the Secretary of Stale 
to amend the Rules. If injustice 
stemmed from the terms of the 
Act Itself, the remedy was for 
Parliament to amend the Act. 

His Lordship would dismiss 
the appeal. 

Lord Scarman. Lord RoskiU, 
Lord Bridge and Lord Brandon 
agreed. 

For the corporation: Stephen 
Gratwick QC and G. D. Paterson 
( Bird a?id Bird). 

For the Comptroller: Hugh 

Laddie (Treasury Solicitor). 

By Rachel Davies 

Barrister 


i 

3 

1 

f t 

3 

■; 

i 


RACING 

BY DOMINIC WIGAN 


BARRY HILLS, who still feels 
hopeful that his 120-strong 
Laznboum string can nudge 
Steve Cauthen to his first 
jockey’s championship, provides 
the young American with 
ammunition at both York and 
Chester today. 

At York Rangefinder and 
Steelworks will he on duty for 
Cauthen in the Philip Comes 
Nickel Alloys Stakes and the 
Marygate Handicap respectively. 
Later on the Roodeye 
Lambourn’s most powerful 
stable provides Cauthen with 
chances through Bill Island and 
Inuvik. 

The first from the quartet to 


take the field will be Simon 
Wingfield Digby’s once-raced - 
Rangefinder in the Khavesmire’s 
Philip Comes Qualifier. A big 
powerfully made coldt from a 
half sister to that prodigous 
weight carrier, Roman Warrior, 
Rangefinder created a favour- 
able impression at San down just 
under a month ago. Sent there 
for the five furlongs Ideal 
Stakes, Rangefinder showed 
good speed against Gat O’Nine 
Tails and Intone until lack of 
fitness and pace provided his un- 
doing in the final furioag. 

Sure to be all the better 'for 
that run, Rangefinder will also 
be well served by the additional 
furlong of the Philip Comes 
race. 

Another who will he well 
suited by the six furlongs of this 


event is Lady Butt's Persian 
Glory. On his one appearance 
to date this colt, trained by Bill 
Watts, did extremely well to run 
the more experienced All 
Systems Go to three-quarters of 
a length in the Margaret Stakes 
at Newcastle towards the end of 
last month. - 

Persian Glory, nearly, un- 
considered in the market there, 
may prove just too good for 
Rangefinder in a race in which 
Warren Place’s newcomer. The 
Fort, is expected to go well. 

From this month at Chester, 
Bell Island is the one Cauthen 
may have most enthusiasm for. 
A lightly raced filly she faces 
six opponents in the Alice Haw- 
thorn Maiden Stakes. 

Bell Island caught the eye 
when forced behind Mydella at 
Wolverhampton on her debut. 


Although she has since dis- 
appointed, I believe she is worth 
another chance over this, the 
country's sharpest track. 

YORK 

2.00 — Chalkey Road 

2.30 — Persian Glory*** 

3.00 — Ponehielli 

3.30 — Gallant Special 

4.00 — Steelworks 

4.30 — Padalco* 

UNGFEELD 

3.15 — Stop Talking 

3.45— Welwyn 

4.15 — Komatch 

AYR . 

7.45 — Forward 
CHESTER 

fi.55— Bell Island** 

7.20 — Lakenhf-ath 

8.20— Curve the Wind 
8.50— Finale fSept 


•:V 




“ ■ : ” - - - - - ;• 



20 prints for £2.25 

send your Kodacoioriiiio.126 & 35mm films and we can 
guarantee you: 

TOP QUALITY 

AD prints win De borderless, round cornered and • 
hl-deflnltlon sheen. 

FAST-SERVICE 

Oh receipt of tne films attne laboratory, we guarantee that , 
Kodacotor S iio, 126 & 35mm films will be processed in 
48hours: 

Please allow for variations in tne postal service and the fact 
that there Is no weekend working In the laboratory- Films 
should be returned In approximately 7-10 days. 

Other film makes and reprints can be processed but are not 
covered by the 48 hour guarantee and so take longer. 
Reprint prices are available on request we do not accept 
C22, sub miniature, Minolta or black and white film. 

COMPETITIVE PRICE ' ril ( 

Developing, postage and packing at£0.85p per film plus a 
printing charge of £0.D7p per print. 


Prints are returned by 
first class post to your 
home, andfuil credit . 
. Is gwen for negatives 
that are not technically 
printable. 


No. of exposures 

FTFS Price 

• 12 

El .69 . 

20 

£2.25 

24 

£233 

36 

£337 


conuriotc we coupon below and post to: Fhwdal Times FUtfl Service, 

PO Box 45. waWfnhead. Befits 5L6 OAQ. ibieohone 0628 70539 

Note: wnuctteutRiait carols exercbed to ensure tlw safety of films 
tttflvereft w* regret tnat noilablHty can be araepttd for any losses resulting 
ftDmtneK»oforaam*fleto«tyfnms. • 



K0DAC0L0R 2 110, 126 & 35mm FILM 


Please enclose cheque made payable to "Financial Times Film 
Service" and post with film and coifeon to: 

Financial Times Film Service, PO Box as, 
lapiow. Maidenhead, Berks s.6 oao. 


NAME. 


ADDRESS, 


^ssssssssssssssest 

Offer vJfidto Si42ffi.Mmmwmri»rBeaso. 

IWOWcrcd In EngUMi NO. 1007290 



CHAIRMAN'SLETTER 

With th» closing of tha your 1981 the Bank completed its 
fifth financial year. 

Though tha period is relatively short, nevertheless it offers an 
opportunity to assess past experience and to gukfe our plan 
towards the future. 

Evaluation of performance can best be considered through 
following the evolution of the Bank's activities during tha period 
In question, the htgh-flghts of which are quantified as follows ; 

1. Average, annual rata of growth of' Balance-sheet is 
171 %. 

2. Share ho (dors equity totalled FF 220 roUfion In 1981 as 
compared to FF76.6 million In 1977, an increase of 190 %. 

3. Deposits recorded an average annual growth of 208 %. 

4. Loans and advances showed an average annual increase 
of 174%. 

5. Net profits after tax achieved an average annual increase 
of 95 %. a return of 10% on shareholders equity in 1981. 

Furthermore, to put past performance in proper perspective, 
here below are some of the more important achievements of tha 
Bank during its five years of operations 

1. Presence in some of the more active Arab and internatio- 
nal financial centers, partly through the opening of its branches in 
Bahrain and In London, and. partly through the establishment of 
-die Saudi Finance Corporation (Saudrfin) in Geneva and the Arab 
Finance Company in Ammam, Jordan {AFC, Jordan], the latter 
being a pioneer in contributing re tha promotion of tha domestic 
capful market. 

2. The Bank ranked fifth amongst aB Arab banks m the 
management of international syndicated .loans diving 1981. 

3. The Bank's success In provI<fing expertise and assistance 
to Its valued clients in identifying and- negotiating “mvestipients 
opportunities as weB as in money and financial markets. 

4. Promoting fruitful co-operation between Western and 
Arab institutions and translating same into the realization of same 
joint ventures and projects. 

With this experience, the Bank looks confidently to tits 
future for fivther growth and consoSdation. _ 

To aehieve this, an appropriate program was drawn which mctu« 

des t 

1. The creation: of a holding company under the- name of AL 
SAUDI BANQUE HOLDING N.V. retake over all participations of 
the mother company now located in Luxembourg. 

2. The new hok&ng company win have an additional capital 
to meet future growth requirements. 

3. The Bank plans to enlarge its presence m soma selected 
co u ntries during the coming few years. 

In Implementing this program, we shall be guided as in tha 
past by tha following principles : 

1. To sup port tiwgrowre of our activities by adequate share- 
holders equity. . . 

2. To rely in our funding re a large extent on deposits from 

ocB’-cfiente, both private and institutions. 

3. To keep a proper relatio n ship between our loans ‘and tha 
nature and sources of our resources. 

4. To remain selective and conservative Jn our lending activi- 
ties. 

5. To consolidata our profit growth through increased eer- 
rtings from sendees which shag be further enlarged and rivers!- 
fied. 

In pursuing and reefomg oar goals, we rely on the continua- 
tion of the confidence of our customers, the support of our share- 
holders and on the zealous efforts of our employees whose 
loyalty end hard work has markedly contributed to the expansion 
of our activities during the last five years; period. 


Dr CHAHC AKHRAS 

r*ha?rman 





?•- 

■ >• f * 

I 

f : 


Al Saudi banque 


Balance Sheet : 1981 

On French Francs) 


December 31 


• Head Office : 

49/51, avenue George V 
75008 Paris 
Tfilfiphone ; 720.86.08 
Tflex : ASBK A 630 349 F 


• CANNES (Bunch) 

Rue des Serbes 
. « Gray d'Albton » 

0631 3 CANNES CEDEX 
T&IAphone : (93) 38.02.11 
Ttiax : ASBKCAN 470 058 F 


• LONDON IBmcM 

City Branch : 

52-60, Cannon Street P.O. Bax 208 
GB - LONDON EC4 
Telephone : (01) 236.65.33 
Telex; 881.34.38 ASBG 
West End Branch s 

31 , Bariafey Square GB- LONDON W1 
Telephone ; 101) 493.89.42 
T Stex : 23875 ASBW 

• BAHRAIN (O.B.U.) 

Kanoo Tower. P.O. Box 5820 

MANAMA 

Telephone : 257.319 
TObx : 8369 SAUBAH BN 


ASSETS 

1981 

1980 V 

Cash, deposits -with, central bank, French treasury, post office giro 

9^91,162 

14,077,448 

Due £rom banks and other financial institutions 

Treasury bills and securities purchased .outright or under, agreement to 

■5^69^83,904 

2^97,040^37/ 

resell 

88,143,450 

« 87,382,759 .• 

Loans to customers 

2^03,010,916 

■ \ 9B,344,943 

Customer overdrafts 

445,499,030 

-.203,149795 

Collection accounts 

32,917,375 

27,012,494 

Prepaid expenses and sundry assets and sundry debtors 

165,857,523 

. 89,620^907 

Marketable securities^ investments in subsidiaries and affiliates 

60310,183 

- 54,654,430 

Fixed assets 

21,7:7,443 

7,445,209 

Due from shareholders for capital increase 

25,000,000 

50/300,000 

Total 

6,621,540,986 

3,743,727,522 

, . / 

LlABmTES 


Due to central bant, French treasury} post office giro 

1,126,935,406 

667,070789 

Banks and other financial Institutions 

3,390,415,559 

1,680,051,601 

sold outright or under agreement to repurchased 

89,887,621 

' 61^72,949 

Customer dqjosas 

1^54,474,141 

934,662498 

Collection accounts 

29,057,844 

25,SS6^03 

Accrued expenses and sundry Eahilrries 

. . 161,604^15 

90281,454 

Provisions 

24,552^585 

. . 10,822,644 

Reserves 

1,168^54 

582^42 

Capital 

200,000,000 

200,000,000 

yfrainod mroingc 

22^0,130 

11,072^06 

Profit for the year 

2134,131 

11724736 

Total 

CONTRA ACCOUNTS 

Guarantees and awls in favour of banks and other financial- 

6,621^40^86 

3745727^22 

lnsriranons 

961,083,320 

147704718 

Guarantees and avals in favour of customers 

790,216,416 

420,027765 

Confirmed credits in favour of customers 

Guarantees and avals in feracr of mscomers and other fiwnrwl 

332^923,901 

1,437,919439 

insriroaonS 

’ 1^349 

690,662,921 








16 




Financial Times Friday July 9 1982 


MANAGEMENT 


EDITED BY CHRISTOPHER tORENZ 


With business schools under attack for being over-theoretical, we examine two influential innovations in executive education 


Building more muscle into 
corporate strategy 


V /' h •' ’ • i "fev.V:':-: 1 v ’■ ' ~ - 


Hie art of ‘action learning’ 


TO A GOOD proportion of Euro- 
pean managers, business schools 
are little more than an academic 
irrelevance — not only the 
home-grown institutions, hut 
even those illustrious names 
across the Atlantic. For such 
sceptics, attendance on a busi- 
ness school course is attractive 
only because it offers a pleasant 
break from the usual daily 
grind, plus instant membership 
of an elite old-bov network that 
promises all sorts of lucrative 
jobs in the future. 

That the academics have 
failed to convince more Euro- 
peans that they will actually 
become better businessmen by 
attending is partly the result of 
a mixture of national factors, 
such as the German preference 
for in-company education. But 
it also has a common cause: 
the schizophrenia of many busi- 
ness schools themselves. 

AIL but a handful of them 
remain torn between tbelr 
wish to play a practical role 
in the business world and their 
status as academic institutions. 
With a few exceptions — notably 
Harvard — their staff's career 
success relies more on the 
traditional academic attributes 
of producing learned theo- 
retical treatises than on a 
combination of empirical 
research and the skilled 
education of practising 
executives. 

There is nothing wrong in 
itself with academic study of 
the capitalist system at the 
"micro” level, but on its own 
It docs not help produce better 
managers. 

The preoccupation with 
theory of many top business 
schools is provoking growing 
criticism not only in Europe, 
but also in the U.S. itself. 

With the help of a generous 
injection of funds from one of 
Europe's most successful 
businessmen. David Sainsbury, 
finance director of the Sains- 
bury supermarket chain, the 
London Business School is 
about to join the side of the 
angels. 

On the strength of Salis- 
bury's commitment of £i.25m 
over the next five years, LBS 
is establishing a Centre for 
Business Strategy. It will house 
what, after Harvard, will 
probably be the second largest 
team of academic researchers 


in the world, in the ultra- 
practical field of business policy 

and competitive strategy. 

The centre's prospectus 
emphasises that its work will 
be empirical and analytical, 
aimed at influencing better 
board-level decisions (what it 
calls “ pragmatic management 
outcomes”). Not only will the 
work be more consciously 
international than much of the 
existing research at LBS, but it 
will for the first time take the 
school into the fast-expanding 
field of technology strategy and 
technology management. 

The centre is expected to 
concentrate on six main areas: 
global industry dynamics, 
including competitive analysis: 
international strategy: techno- 
logy studies; strategic processes 
(decision - making); mature 
industry studies; and service 
industries. 

Significance 

The broad range of this 
research should provide the 
added bonus of helping to tie 
together more closely the 
specialised studies for which 
LBS has a particuarly high 
reputation, including finance, 
marketing and organisational 
behaviour. So the centre's signi- 
ficance will extend far beyond 
its immediate staff of eight 
“full-time equivalents" (includ- 
ing a number of part-timers) 
assisted by six research students; 
in itself this amounts to a signi- 
ficant expansion of the school's 
faculty, by well over 10 per cent. 

As the LBS Principal. Profes- 
sor James Bali, says: "This is 
one of the most exciting 
research developments under- 
taken by the school in recent 
years.” He says it “ will put us 
in the forefront of strategic 
thinking, not only through 
research but also through our 
teaching programmes." 

For all the emphasis on the 
wish to influence practical 
decision-making, Professor Dean 
Berry, who will be the 'centre’s 
chairman, makes clear that it 
will also be following a 
thoroughly respectable academic 
objective. 

"The whole area of general 
management and business policy 
has suffered worldwide from a 
lack of intellectual respect- 
ability” he says. "The academic 
framework has been weak — it 


has largely, consisted of string- 
ing together a series of cases. 
Some people have tried to get 
round the problem by construct- 
ing models; but these don't tell 
you much about how strategy 
gets made 'and policy decided." 

In contrast with this approach, 
the centre will conduct extensive 
research in order to build up 
databases of what actually 
happens: “ We’re making tbe 
scientific presumption that 
there's actually’ some order out 
in this disordered world," says 
Berry. 

.Tbe idea for establishing the 
centre grew out of a research 
project on industrial structures 
and international competitives 
ness which Dr John McGee, who 
will be the centre’s director, 
started three years go at the 
behest of David Sainsbury; 
McGee chose, to look initially 
at the reprographics industry, 
and tbe study is now well 
advanced. 

Sainsbury is the largest 
single shareholder of the 
famous British retail chain 
which bears his family name, 
and: the heir to a substantial 
part of the family fortune. A 
trust set up by him already 
finances a considerable amount 
of academic research, to which 
the centre will now be added. 

One of a growing number of 
top British executives in their 
forties with a business school 
education (an MBA from New 
York's Columbia University.), 
he says he shares the wide- 
spread feeling “that there is a 
considerable need for better 
strategic thinking in British 
industry, and that business 
schools can make a valuable 
contribution to this.” He also 
hopes the centre’s work will 
help government and Ihe finan- 
cial sector — together with the 
other institutions which create 
the environment in which com- 
panies operate — to develop “ a 
clearer idea of what industry 
should be doing.” 

Sainsbury now plans to help 
LBS raise at least another 
£150,000 a year from other Com- 
panies and trusts — inflation- 
proofed, like his annual 
£250,000 — so that the centre 
can expand further. This would 
enable it to undertake research 
right across the six areas that 



HE HELPED propound the 
philosophy that “small is 
beautiful ", he was ostracised 
; by the business schools for his 
' heretical notions about 
management education, s® 
much so that he win forced 
to practice his considerable 
skffls outside Br i ta i n ; and be 
is now enjoying a belated 
Indian summer -of recogni- 
tion, thanks in particular to 
Lord Weinstock’s enthusiasm 
for his recent work in GEC 


and otter companies. 

Sevcnty-five^ear-old Pro- 
fessors Reg Resaw is the 
fatter of “action learning, 
a system of pitching pwple 
into un familiar organisations 
and situations to learn by 
solving real-life problems, 
rather than by examining 
academic theories or empiri- 
cal case studies. Lord Wein~ 
stock and several other 
supporters have now stepped 
forward to help subsidise the 


publication of Bryans’ col- 
lected post-war essays (all 
846 pages of than) at a 
price that every manager can 
afford. The review below of 
“The Origins and Growth of 
Action Learning** is by 
the chairman of Cadbury 
Schweppes, who has had 
a particularly close asso- 
ciation with the business 
school movement hut is also 
a Renas admirer. 


John McGee and Dean Berry, director, and chairman of the London 
Business School's new Centre for Business Strategy: " We’re making 
the presumption that there’s actually some order out in this 
disordered world** 


have been Identified by Pro- 
fessor Berry and Dr McCJee. 

The centre's initial thrust 
will be in industry analysis, ser- 
vice industries and mature 
industries (including the diffi- 
cult 'questions of board con- 
struction and the prediction of 
corporate collapse). 

secondment 

Berry and McGee expect 
about half the staff to come 
from LBS itself — including a 
number working only part-time 
for the centre — and the rest 
from outside; the first appoint- 
ments should be made shortly. 
They are especially keen to 
bring in several senior execu-. 
tives from Industry and the 
financial sector, as well as top 
civil servants, whether on 
secondment or as part-timers. 

The centre will also link up 
with other business schools or 
individual academics working 
on similar themes, such as 
Harvard and the University ef 


Michigan; Harvard is malting a 
particularly dose study of the 
world car and electronic com- 
ponent industries. The first 
visiting scholar will be 
Harvard’s Professor Joseph 
Bower, who is considered one 
of the world's leading authori- 
ties on business policy. 

Despite his strong emphasis 
oq the practical use to which 
companies should be able to put 
the centre's work. Berry rebuts 
any suggestion that it might 
turn into a sort of consultancy. 
It will be prepared to do conr 
tract research, but any con- 
sultancy work will be taken on. 
by members of the centre on an 
Individual basis, he says. 
Though he already heads his 
own consultancy. Berry is 
critical of the consultancy 
world as a whole; rather than 
thoroughly researched findings 
of the sort that the new centre 
will be making, he argues that 
consultancies tend to apply only 
“ rules of thumb.” 

Christopher Lorenz 


“ i NEVER taught anything to 
anybody. I might occasionally 
have enabled them to Tearn.” 
(P. 319). 

Action learning has its roots 
in Revaxus* early- investigations 
into coal mines and hospitals. 
It looks to practising. manager 
to identify where problems lie 
and how they might be attacked. 
Tbe investigators: -then have to 
carry with them 'those in. a posi- 
tion to take the necessary 
action. 

In the mine and hospital pro- 
jects, it was insiders enquiring 
into institutions othe r th an 
their- own. In the -programme 
which Revans organised in 
Belgium, the . managers who 
took part were outsiders with 
no direct experience of the 
industry into which they were 
enquiring. Either way the 
action learning approach seems 
to me to have two essential 
attributes. 

The first is that it is a ques- 
tioning approach. What pre- 
vents an. organisation from 
being as effective as it might be 
is usually hard to pin down. We 
can only obtain a clearer map 
of the organisation we aim to 
explore by asking questions. 
Asking questions means listen- 
ing to the answers — and 
listening is an underrated art 
in a monologue world. Another 
facet of listening is that poten- 
tially everyone in an organisa- 
tion has ideas to contribute— as 
quality circles and successful 
schemes of participation testify. 

The second aspect of action 
learning is that it depends on 
the way the actors on the action 
learning stage relate to each 
other. Whoever is undertaking 
the enquiry learns from those 
who own the problem and they 
from him. In the Belgian pro- 
gramme the enquirers met 
together regularly “as comrades 
in adversity'’ (to use K ©vans' 
phrase) and their interaction 
was an important element in 
the learning process. It is the 


network of relationships which 
creates the opportunity to 
learn. 

Revans - points out that 
systems and institutions can 
only be changed through people 
who are themselves prepared 
to change and ’to learn more 
about themselves in the pro- 
cess. These conditions are met 
when we 'are faced with real 
/problems, to which a real 'risk 
of failure is attached., . 

Hence the case study is no 
substitute for action learning, 
nor is job rotation. Action 
learning would put a newcomer 
into a job to question its pur- 
pose, not to accept it as it is. 
Neither is consultancy action 
learning, because it is the out- 
side expert coming in from 
above. Action learning takes 
place among equals who have 
to find their way forward by 
drawing on their own resources. 

Revans 1 research shows that, 
where channels of communi- 
cation are dear and where 
there is every encouragement 
to use them, organisations are 
effective. “The mechanism is 
a simple one. If the consultant 
appreciates the suggestions of 
tbe ward sisters and will even 
seek their opinion, the ward 
sister will be anxious to have 
ready for him the maximum 
information about patients.” So 
sisters consult their nurses, 
who in turn talk to their 
patients. From this exchange 
staff and patients learn and the 
latter recover faster, but the 
pattern is set from the top. 
There is a stark lesson here 
for the success or failure of 
schemes of participation in 
industry. 

Tbe paradox is that communi- 
cations, for want of a better 
word, are both the problem and 
the solution. We need to find a 
sense of order and of purpose 
in our work. “It is not the 
pursuit of happiness that is the 
inalienable right of mankind, 
but of intellisxbility. >a The pur- 


TECHNOLOGY 


EDITED BY ALAN CANE 


Kazuhiro Fuchi is one of the experts behind Japan’s work on the fifth generation computer project 

Design starts on a computer with human power 


BY PETER McGILL IN TOKYO 


A TEN year project, started last 
month in Tokyo to research and 
develop a "5th generation com- 
puter" that will be able to 
reason like humans, automatic- 
ally translate languages, give 
complex guidance to robots and 
communicate with people in a 
form of human speech. 

Already, the project has 
created a groat deal of interest 
among foreign governments and 
eoinpiiter manufacturers like 
IBM. 1C.L and Siemens, with the 
UK particularly concerned to 
make use of British advanced 
software development and 
research into artificial intelli- 
gence. 

This is despite the fact that 
research is still at the stage of 
investigating basic theory, and 
nobody, including the Japanese, 
yet has any clear idea of what 
kind of computer will result 
from the project. 

Japanese research Is centred 
on the Institute for New Genera- 
tion Computer Technology in 
Tokvo. funded by the Japanese 
Government and' staffed by 40 


scientists from Government 
laboratories and Japan's top 
eight computer firms; NEC, 
Hitachi, Fujitsu. Toshiba, 
Mitsubishi, Matsushita, Oki and 
Sharp. 

The Institute is the brainchild 
of Mr Kazuhiro Fuchi. the 
Institue's director of research 
and executive director, and 
formerly director of information 
science at the government’s 
electrotechnical laboratory . 

The money for the research 
— YlOObn — over 10 years, all 
comes from the Ministry of 
International Trade and In- 
dustry (MITI). 

“This project Is in a sense 
loo early for industry." said Mr 
Fuchi. However, he estimates 
that the fifth generation com- 
puter. if it is ever developed in 
the 1990s. will capture about 
half of the world computer 
market. 

Parallel lo the research on 
the fifth generation computer is 
an independent project to 
develop ihe so-called “super- 
computer" that is ultra-fast. 


ultra-small and with minimal 
electricity consumption, prob- 
abally based on either the 
Josephson conjunction or 
gallium arsenide chips. 

When developed, the super- 
computer has obvious though 
limited scientific uses iri atomic 
energy research, nr in the 
design centre of a motor com- 
pany or aircraft company for 
instance. But Mr Fuchi guesses 
that the supercomputer "will 
take only about 10 per cent of 
the market." 

The fifth generation com- 
puter project contains a host of 
unknowns for the Japanese. Mr 
Fuchi and his research team see 
a “problem solving and in- 
ference machine” as a key part 
of the hardware, with a corres- 
ponding problem solving sec- 
tion in the software. 

These inference functions 
will be supported by a know- 
ledge bank or “ library " of 
languages and pictures. State- 
of-the-art architecture, possibly 
including the latest result from 
the supercomputer project, will 


support the new hardware 
system. 

The user will communicate 
with the software in speech, 
images or a “ natural "■ lan- 
guage that simplifies ordinary 
speech just enough for a 
computer to understand (an 
area of intense international 
research at the moment). 

Capacity 

This will be converted by the 
software into a “keraal ’lan- 
guage” based on predicate and 
syllogistic logic for input and 
output to the hardware. (At 
present Vonneumann.BV Com- 
puters use a machine language 
of binary impulses to link the 
software and the hardware.) 

A 41 meta inference system *’ 
will be developed that incor- 
porates deductive functions and 
high-level functions such as 
common. Inductive and ana- 
logical inferences, as well as 
“ tacit inferences." 

The goal is Lo provide an 
entire system that reasons and 
solves ■ problems in much the 
same way as a human mind. 


As its name suggests, the 
“ keraal language ” is a key to 
tiie system. The nearest the 
Japanese researchers have 
come to a candidate keraal lan- 
guage is a predicate syllogistic 
logic language called “ prolog " 
developed by Edinburgh Uni- 
versity. The idea for Prolog, 
which Mr Fuchi called a 
" crucial development " for the 
success of the Japanese pro- 
ject, came 10 years ago through 
joint research of the universi- 
ties of Edinburgh and Mar- 
seilles. 

However, Edinburgh per- 
fected the idea into a commer- 
cial software that is widely 
used by the American firm 
digital equipment corporation 
(DEC). 

Fuchi hopes to develop the 
inference capacity of the fifth 
generation computer to 100m 
1 g.lips (logical inferences per 
second) compared with 10,000- 
100,000 lips possible on the 
current generation of com- 
puters. 

Outside reaction to the 
claims of the Institute range 
from downright scepticism to 
cautious interest and concern. 


Collector stations help AFA Minerva check on subscriber security 

Central monitoring to beat the intruder problem 


but an IBM official did concede 
that the project had great 
potential for technology spin- 
offs. 

The same point was echoed 
by a source at the UK embassy 
who said the project was of 
"enormous value to Japan" 
and in terms of commercial 
spin-offs “it is probably not 
even worth defining what the 
long range goals are.” . 

The UK Government thinks 
highly enough of the project 
though to have sent a high level 
team of experts led by a Dol 
official to attend a symposium 
in Tokyo on the fifth generation 
computer. 

A working group has since 
ben set up to formulate UK 
policy on the computer. 

It is still too eariy to foretell 
what kind of co-operation Japan 
and interested foreign coun- 
tries have in mind, or if- the 
Japanese are willing to share a 
substantial amount of the 
research with potential overseas 
competitors. 

The Japanese are already 
talking of commercial applies- 


BY GEOFFREY CHARLISH 

SOME YEARS ago ihe lire scr- Minerva which has just invested 


vices and police forces in ihe 
UK started to disband arrange- 
ments by which private tele- 
phone lines from the alarm 
systems of premises of one kind 
or another could be wired 
direct to stations. 

The workload proved to be 
too .great 'often because of the 
rate of false alarms. The police, 
in particular, had other things . 
to do. 

This kind of central moni- 
toring is now down to private 
security firms like AFA 


£lm in a central station at 
Parker Street, WC2, in. which 
modern computer and telecoms 


techniques have been brought 
to bear. 

There are already 1.500 
customers in the South East 
connected to it; another 3,500 
will soon follow and the ulti- 
mate capacity is 14.000. 


Using private leased 'phone 
lines the station can auto* 
maticaUy monitor intruder 
alarms, fire detection systems, 
process and refrigeration plant 
and building services equip- 
ment. 


ATTENTION LONDON 
BUSINESSES & PROFESSIONS 
LOOKING .AT WORD PROCESSING ? 


WANG 


WORD PROCESSING 
EXHIBITION IN DOVER ST, W1 
JULY 14 & 15 

for your personal invitation 
Tal: 01-408 1516 Today 
BUY THE BEST BUY WANG 
SHEERLOGIC LTD. 

41/42 Dover StrooL London, wi 
LA about our Special Concession 



The main computer enclosure, communications, terminals VDUs and CCTV at AFA-Mlnena's 
central station in Parker Street, London 


Each customer does, not have 
a separate direct line connec- 
tion to London. To keep the 
costs down, AFA Minerva has 
used 26 collector stations to 
which each subscriber Is con- 
nected by a leased line, or. if 
the distance is stil to great* by 
a dial-up line on the public 
.switched network. 

Alarm response 

The signals at the- collector 
stations are multiplexed so that 
they can all "be sent down one 
high-grade line to London at 
the same time. 

In tiie worst case, when a 
subscriber’s signals have to go 
through two of the collector 
stations, the .alarm response' 
lime is unlikely to exceed 15 
seconds or so. 

During that time the message 
is received and multiplexed at 
a collector, sent to -London,, 
de-mul tipi exed and scanned by 
a Data General Nova computer 
once every 3.5 seconds. 

If. an alarm condition Is 
identified during the scan one 
of three operators, seated at 
visual display units, will see the 
problem on his screen. 


To eliminate the false al a r u m 
often associated with setting and 
upsetting of systems on premises 
at business opening and closing 
times, the computer is pro- 
grammed to disregard alar m 
signals generated within the 
narrow time gate allowed for 
this activity. 

When a genuine alarm Is 
received, the operator will 
immediately know what actions 
to take since a page of data 
related to that subscriber 
immediately appears on the 
screen. The Parker Street 
centre also has direct lines to 
appropriate police and. fire 
stations. . 

Monitored 

-All incidents are . logged 
initially -on disc stores and ulti- 
mately oh a dump tape. In 
addition, tbe computer is dupli- 
cated- and even if everything in 
the .control room failed, the 
system could still be monitored 
from the line inputs in the base- 
ment More on 01-892 4422. 


tions with foremost a machine 
translation system that will be 
able to translate multiple 
languages with 90 per cent 
accuracy at a 30 per cent lower 
cost than if done by man. 

Consultation 

Hitachi has a prototype that 
translates high .'school level 
English into Japanese with 60 
per cent accuracy. 

Among other applications for 
the basic technology after three 
years will be "consultation 
systems’’ where a computer 
that communicates with the user 
in simplified natural language 
and speech, will conduct medi- 
cal diagnoses based on expert 
knowledge input, mechanical 
equipment GAD (computer 
aided design), and computer 
systems diagnosis. 

In the long term, the new 
generation of computers will be 
used inside' robots to give direc- 
tions. Mr Fuchi said “Many 
people are talking about 
fotelligent robots, but they 
ignore the problems of the com- 
puter. Present day computer^ 
are not good enough." 

Welding 

Portable 

units 

Hayters PLC of Bishop's 
Stoitford, Hertfordshire, has - 
added the LD 250 and U> 300 
to its range of portable wel- : 
ders. Hay ter claims that with 
electric starting and weigh- 
ing 203 kg the units, naming 
at 3000 rpm, there is an open 
circuit voltage of 85v. This is 
suitable for most types of 
rods and the engines have 
sufficient power to produce a 
-50-300 amp rating even when 
ffising four gauge rods on a 
continuous cycle. .More from 
0279 723444 

Machine tools \ 

Two models 

_ Norton Machine . 

Tools, Orgreave Drive, bore 
House Industrial Estate, 

Sheffield (0742 697341) can 
now supply the MH 630 and 
MH 630S. machining centres, 
■two additions to their Knrakf . 
range. The automatic tool 
changers are available with - 
. 32 or 60, tools. 


suit of intelligibility is a theme 
that runs through these essays 
and intelligibility is a good test 
to apply to the aims, structures 
and tasks of the organisations 
in which we work. 

It is difficult to give the 
flavour of the book in a brief 
review, but let Revans speak 
for bimself: ^ 

- What, after ail, is education 
other than learning how to ask 
questions?" 

"There can "m* no action 
without learning and no loom- 
ing without action." 

•• So much idle academic 
rolling stock and so many miles 
of scholastic sidings green 'with 
yesterday's weeds.” 

" The vitality of participation 
is its local relevance." 

“Like the film of a chimney 
demolition run backwards." 

I read the book straight 
through which Is a stern test, 
since it is made up of 52 
separate essays. Inevitably there 
is some repetition, because 
Revans's writings are based on 
a common core of experience, 
but each essay illuminates a 
different aspect of his Uiemp. 
The English is admirably clear 
and the Biblical quotations apt. 
Revans's Biblical scholarship 
and his success in International 
sport have contributed to the 
formation of his thinking an 
action learning. The right 
relationship between coach and 
athlete is after all' a good 
example of action learning in 
practice. 

“Action Learning ” forces us 
to question some of our more 
comforting assumptions, about 
running organisations and this 
is unsettling. It is- an 
important book and one from 
which all of us can learn, 
because it makes us think. 
There is. a health warning 
inside; "the lesson seems to he 
that one ought not to start 
action learning if one is going 
not to like it." 

By Repimtld It'. Kerens, 
Char tiPcll-Bmtt. £S. ' 

Sir Adrian Cadbury 



Doubles your 
W.P output 
for £1095. 


Ml lil h H i ii| Him— M 

UnMritoQ()LBrCBVimm%HaittaV4liii? 
I TMtptaac tatdnmtfa KUL Woe B29SS3. i 


Fixing 

Screwdriver 
to hammer 

Remember the slur which 
used .to be cast upon the 
ability of the Birmingham 
workman? One ratter biting 
but undoubtedly unjustified, 
phrase was to describe a 
hammer as a Birmingham 
screwdriver. 

But the Bra ramies were 
ahead of the times because 
now things can be fixed to 
walls with a hammer pro- 
vided one has Rovspins. 

These are, in effect, skewers 
made from star-shaped alumi- 
nium alloy tubes which are 
twisted and. then . cut to 
length. 

Pilot holes can be drilled 
through, say, a battem and 
then into the wall. The Rev- 
spins are simply tapped home 
and cut a thread in the hole 
as they enter. * 

-The developers claim that 
Revsplns will grip even in 
light' insulating blocks and 
-can be used in wood includ- 
ing the -grain and the edges 
of chipboard. 

The product has been 
designed and patented by 
Prodev, a small industrial 
co-operative a £ Unit 5. 
Bessmer Crescent, Rabans 
industrial Estate, Aylesbury, 
Bucks. Arrangements are 
being made for natinnai 
distribution. 

Prodev members seem fo 
have surprised themselves. 
One said: "it’s so simple we 
wonder why no-one has 
thought of it before." 

Mr John Oilis <0296 32519) 
win enthuse further. 

MAX COMMANDER 

Publication 

Wire cutter 

A four-page leaflet describ- 
ing- a new range of wire and 
sleeve cutting machines Is 
available from Eraser Inter- 
national at Fortway industrial 
Estate, Andover, Hants (0264 
51S47),.:.- 





THE ARTS 


*1! 


w 

:3ut 


. * . 
i ’i ii 


!■ J l 


Cavell/Chichester Festival 

B. A, Young 


The history of Nurse Edith 
Cavell is quite straight forward. 
Working in a hospital in 
occupied Brussels, -during the 
early years , of the First World 
War, she became Involved in 
an organisation helping British 
soldiers to escape the. German 
authorities. She confessed 
everything when she was 
arrested and tried by the 
Germans and the Germans shot 
her, as they had every legal 
right to do. 

What Keith Baxter has done' 
in his very interesting play is 
to explains or try to explain, 
why these things happened. 
Edith Cavell, as he draws her 
and as Joan Plowright plays her 
in a glowing, performance. Is an. 
uncommonly straight forward 
woman. “I never lie,” she tells 
someone quite early in the 
evening; and though she 
doesn't say so in so many words 
she goes to the help of anyone : 
who needs it, deserving or not' 

So when two wounded British 
soldiers in plain dothes are 
brought to her she helps them 
on their escape-route. . This 
naturally leads . to . further 
episodes of the same kind— 200 
altogether, the record says — 
until she finds herself in a key 
position on. the escape-rdute. 
Detection was inevitable; and 
when she was questioned, she 
did what she always did, she 
told the truth. 

But why was no plea for her 
life made by the British Govern, 
mem o tf the time? The 
responsibility. Mr Baxter says, 
lay with Lloyd George.- Lloyd 
George knew that a plea was a 
sign of weakness; whereas a 
waive of indignation would be 
a stimulus to recruiting. If any 
plea was 'to be. made it should 
be made in the newspapers. In 
fact, the Spanish ambassador 
made a brave attempt. The U.S. 
ambassador, in whose care the 
British in Belgium lay, pleaded 
sickness. Edith Cavell was duly 

shoL • 

Mr Baxter’s treatment while 
keeping nurse. Cavell and her 
intimates simple and un- 
complicated. as if seen in close 
up, surrounds them with a great 



Joan Plowright and Dulcie Gray 


frame of theatrical elaboration 
that fills in the details and 
portrays the public feeling of 
the time. He has an eye for 
effect that would grace the 
editor of a popular newspaper. 
When the lights first go up the 
great three-tier set is crowded 
with Edwardian figures in top 
hats and tailcoats among whom 
we soon discern the politicians 


of the day— Asquith, Derby, 
Grey, Iioyd George, the young 
ChurcbilL They talk to each 
other in headlines ' as if they 
were cartoon figures. The more 
subtle points of doctrine are 
left to a real newspaper man, 
Babbingtoo, who is eager to 
admit when his reports are un-' 
true bur can. always explain 
why he has written them— a 


very good performance in 
Cockney by Nigel Stock. 

It is very effective and my 
only adverse comment is that it 
begins too far back. We start 
In 1907, when the Cavell hospital 
is founded, and for seven years 
as it were, we are concerned 
only with ah interesting woman 
- devoted to nursing but other- 
wise, not unus ual. We get a 
glimpse of her mother (Duleie 
-Gray; and we see how her treat- 
ment. of a- girl morphine-addict 

■ leads to something like love. 
But not until the beginning of 
the second act does the war 
begin to mark her as the 
curious woman she was. 

And curious she was indeed. 
When you think of the women 
in the Second World War, 
women like Violette Szabo, her 
instant confessions seem very 
unheroic. Miss Plowright shows 
-little emotion • beyond 
exhaustion. She faces every 
problem- — domestic, clinical or 
military — with a solid accept- 
ance that put me in mind of 
Saint Joan indeed of .Miss Plow- 
right’s performance as that 
Saint. She only emerges from 
this carapace once when she has 
been playing cricket with the 
children of friends id Norfolk, 
when she shows a real capacity 
for happiness. 

Of the others included in the 

■ close-ups Paul Hardwick is -very 
effective as the Belgium surgeon 
Depage. Cathryu Harrison's 
morphine-taking Grace, swing- 
ing from hysteria to stern 
politiness is good, and I much 
liked Brett Fondest as the lame 
Spanish ambassador. Among 
the cartoons Michael Sadler 
plays the young Churchill with 
a fine resilience but without the 
verbal characteristics now 
familiar to us; and Philip 
Ma doc’s Lloyd George (a part be 
has played before) is a masterly 
impersonation. 

Peter Rice designed the set 
with metal staircases rising 
ultimately to a hospital ward 
high above stage level in which 
hardly anything happened until 
the Bodies come and clear It 
out. If he also designed the 
costumes he must be 
congratulated on getting the 
men’s trouser creases right 


Sacred Ellington/St Paul’s 


Dominic Dili 


Judged by the audience fig- 
ures, this performance * of a 
selection of Duke Ellington’s 
sacred nras&lfii St Paul’s— the 
biggest, and most ambitious 
presentation of this year’s City 
of London Festival— was a 
triumph. Artistically, . it 
plumbed such, depths of dis- 
honesty and vulgarity as can 
never before . have, been wit- 
nessed in the Cathedral or at 
any City Festival event 

The sacred music is late 
Ellington, composed during the 
nine years before his death in 
1974. Long before that, twenties 
Cotton Club and postwar Holly- 
wood had sometimes become in- 
extricably mixed; but the best 
of the religious numbers speak 
with a simple purity and pas- 
sion, and a powerful sincerity, 
that in the right circumstances 
is both beautiful and touching. 

Not here, St Paul’s may be 
no ideal place to listen, and re- 
joice, to the complex, fast-mov- 
ing colours of Ellington counter- 
point; but even in that vasty 
acoustic; the sounds would have 
carried their message joyfully 
enough if the whole had not 
been presented with the glib- 
ness of an Ameriran chat-show 
and the tatty" slickness of the 
worst sort of low-budget TV 
spectacular. It was the TV 
cameras indeed, astonishingly 
noisy arid disruptive, rushing up 
and down the aisles on their 
wheeled engines and derricks 
and booms, which quite literally 


stole the only tolerable moment 
of the show's first half — - a few 
minutes of splendidly muscular 
whirling under the dome by a 
bare-chested Wayne ' Sleep in 
time to Ellington’s “ Praise God 
and Dance.” 

A distinguished cast of 
musicians had been assembled 
under the direction of Alan 
Cohen, including the saxes of 
Tony Coe, Ronnie Scott and. 
John Surraan, the trumpets of 
Alan Downey, Kenny Baker 
and Kenny Wheeler, and 
Johnny Edwards’ trombone. 
But their music appeared only 
in the briefest ' intervals 
between Chat: volley - upon 
volley of introductions and 
pocket interviews from Rod 
Steiger {another dimension of 
sacred Host entirely), reminis T 
cences still oilier from Douglas 
Fairbanks (flown in specially 
for the occasion) and from the 
fatuous Tony Bennett, whose 
deeply vulgar rendering of 
” Somebody Cares " was near- 
perfect proof on this occasion 
that nobody did. No kind of 
homage this, but a specious 
affront to the memory, spirit 
and work of one of the greatest 
jazz musicians and composers 
of any age. Scores of people 
left disappointed at the inter- 
val, complaining that they 
couldn't bear; my only com- 
plaint, leaving with them, was 
that Td heard more than 
enough. 


Hamlet/Globe, Paris 

Nicholas Powell 


Paris theatre, dominated by 
directors whose treatment of 
the dassics is charted as closely 
today as Beckett or Ionesco pro- 
ductions were 25 years ago, has 
had a go at “Hamlet.” 

The result is neither arch 
conservatism nor perilous inno- 
vation — the usual choice — but 
an attempt to ' return to the 
roots, by putting “Hamlet” 
back on the stage of the Globe. 

The production, by “ La Coro- 
pagnie des -Acteurs” has been 
surrounded by the sort of pub- 
licity normally reserved for 
“On Ice" creations, publicity 
which' with Gallic overstatement 
describe the “ reconstitution ” 
of the Globe. In reality the 
stage, not the theatre, has been 
rebuilt. Alas, the ’* Elizabethan 
Tavern” for the after show 
dinners is only period in as 
much as trestle tables were 
trendy in 1601. 

The faithfully and beautifully 
finished reproduction of ihe 
Globe's stage is star of the 
show. The tininess of space 
makes for rapid entrances and 
exits and sustained pace of 
action. The ghost of Hamlet’s 
father treads around the edge 
of the .stage like an automaton, 
on a German Town Hall clock. 
The use of the “ inner stage,’’ 
with or without decorative back- 
drop. and the gallery — where 
the King and Queen sit to watch 
the players’ show — compensates 
in height and depth for the 
small stage and adds a visual 
Variety which directors norm- 
ally seek with all sorts of 


scenic construction. 

The potential of lie exercise 
Is huge and the shortcomings 
consequently all the more dis- 
appointing. Firstly this 
“Hamlet” lacks overall direc- 
tion — no director is actually 
named on the programme. The 
actors have not worked enough 
at adapting to the small stage; 
the production contains too 
much conventional gesturing 
and movement, fine on the stage 
of the Theatre de.Ia ViUe but 
inappropriate here. 

Nor has the troupe worked 
sufficiently on the text: too 
many passages leave one with 
the uncomfortable impression 
that the actors have excellent 
memories but don’t always 
know what it all- means. 

Jean-Marie Proslier turns in 
a portly, bumbling Folonius. 
Maria Mauban is remarkably 
sensitive and subtle as the 
Queen. Jean-Pa ul Zehn acker is 
not the youngest or most mov- 
ing of Princes. But the biggest 
drawback of this production is 
the site — inside a giant 
marquee (die organisers are 
aiming at Holiday on Ice size 
crowds) at the Porte de Cham- 
perret which is next to Paris’ 
ring road. 

The production illustrates 

wonderfully that elaborate 

scenery and stage constructions 
are not necessary to draw one 
into the play. But the rumble 
of ten tenners changing gear 
has nothing Elizabethan about it 
and is very destructive of audi- 
ence attention and actors’ con- 
centration. 


FHzcarraldo (A) Camden Plaza 
Annie (U) Odeon Leicester 

Square 

Porky’S (X) West End and 

North London release 
Jacques Tati Barbican 


Cinema 

Nigel Andrews 


Deep in the Amazon jungle, 
lurks Klatls Kinski: with electric 
hair, stark eyes, gargoyle face 
and a dirty-white colonial suit 
that has seen better decades. 
Kinski is to German- director 
Werner Herzog what Nikolai 
Charkassov (Alexander Nevsky 
and Ivan the Terrible) was to 
Eisenstein: his right-hand actor, 
executor of dreams, a chameleon 
presence, changing hue accord- 
ing to his mentor’s moods and 
myths. 

In Fitxcarnido Kinski came 
late into., the film after three 
different stars bad been mooted 
for the title role in Herzog’s 
curse-laden epic . about an 
opera-mad ex-railway tycoon 
who wants to build his very own 
La Scala deep in the Peruvian 
jungle. Albert Finney and Jack 
Nicholson were both courted but 
declined, and Jason Ro bards 
began the film but left it, 40 per 
cent completed, struck down by 
dysentery. 

■ Enter as Fitzcarraldo Kinski, 
snarl er unforgettable in Her- 
zog’s Aguirre, .Wrath of God 
eight years before: and perhaps 
Destiny, after dropping hints 
like bricks on Herzog’s, toes, at 
lari: got her way. Kinski is the 
man,- and he makes a near-im- 
possible ■ movie nearly work. 
Near-impossfble because of an 
ev ery-whicb -way, contortionist's 
script, requiring its main charac- 
ter to be both bat-brained 
dreamer and steel-willed entre- 
preneur; and because Herzog 
posed himself a logistical night- 
mare in the film’s staging, re- 
quiring a multi-ton steamer to 
be hauled over a mountain be- 
tween parallel - rivers. (Fitz- 
carraldo hopes to fund his 
opera-house by exploiting an un- 
touched rubber forest cut-off by 
rapids: boat-over-mountain is the 
only means of access). 

What unfolds on the screen 
is a magnificent shipwreck of a 
movie: broken and imperious as 
a galleon fallen on rocks. The 
febrile prologue wherein Kinski 
and his mistress Claudia Cardi- 
nal. filthy both from an epic 
canoe-trip, scuffle gatecrash ingiy 
into the opera-house at Manaos 
to drink inspiration from Caruso 
in Ernani promises wild 
wonders to come. And the mad- 
ness-kissed early voyagings of 
Kinski and his crew up-river in 
their renovated steamer also 
weave a silvery spell: Caruso 
crooning from a wind-up gramo- 
phone perched a-crackle on the 
prow, the waters deep, pearly 
and sQent the jungle succulent 
with unseen Indians. 

But, sadly, it’s Herzog’s cen- 
tral folie de grandeur that send 
his film spiralling into fateful 
vortex. The steamer's harshly 
engineered ascent up a man- 
made Mount Ararat, urged on 
by ropes, winches and the tribe 
of straining Indians who help, 
is a long sequence of desper- 
ately willed magic undone hy 
broken rhythms and oddly 
frayed suspense. The steamer's 
should-be triumphant descent 
into the neighbouring river -is 
anti-climactically shot and cut 


Jungle noises 


And. what should be Fitzcar- 
raldo’s crowning perverse 
adventure of survival, when the 
Indians release the moored-at- 
night boat so that it hurtles to- 
wards the rapids, a sacrifice for 
their Gods, is all too brusque, 
brief and perfunctory: as if 
time or money or stamina — or 
all three— had finally run out 
for the production. 

On paper Fitzcarraldo pro- 
mised thrilling sparks from the 
meeting of two eroticisms, 
Italian opera and Amazonian 
jungle. And on celluloid, especi- 
ally early-on as Verdi and 
Bellini pour forth from cracked 
records in shanty-town Iquitos 
or greenery-bo a'd river, it often 
provides them. But the fated 
circularity of the story — the 
river finally sweeps Fitzcar- 
raldo borne, falling to give him 
his dream — weakens tension, 
and production traumas must 
have helped to make the film 
visually a thing of rags and 
tatters. (Photographer Thomas 
Mauch produces precious little 
to equal his lens-magic in 
Aguirre.) 

There remains Kinski: a 

demon - whose Halloween-mask 
face and flaxen quiff of wild 
hair create their own magic. 
Both as dreamer and doer, he’s 
an irresistible figure of diabolic 
energy and the light-carrying 
Lucifer in the film’s best scene: 
when the steamer is boarded by 
inquisitive Indians who silently, 
stealthily prowl around him 
feeling ihs blond hair, awed at 
his blue eyes — a white God on 
whom only Kinski, imperious 
and staring-eyed, could bestow 
the right crazed nobility. 

★ 

As one of those cultural cast- 
aways who never saw Annie the 
musical on stage. I'm unarmed 
for invidious comparisons. But 
the cannonade of raspberries 


so far unleashed on John 
Huston's film version puzzles 
me. Huston, with a 35-million- 
dollar budget, has certainly 
giganticised the tale: making 
the characters boom forth larger 
than life — notably Carol 
Burnett’s nuclear-tonsilled Miss 
Hannigan. the Gorgon of the 
orphanage system, and Albert 
Finney's millionaire - with - a - 
heart Daddy Warbucks (bor- 
rowing Huston's own glittering 
eye and brushed-Celtic brogue) 
— and turning Maison War- 
bucks into a beetling manse 
with more eyries and baroque 
corners than Hotel Marien bad. 
But the film has spirit to go 
with Its size. 

Annie herself is an 
un-upstageable charmer. Aileen 
Quinn, with a wide smile and a 
smack of freckles under the 
russet curls, sings and grins up 
a storm. At her side Ann Rein- 
king dances like the Zephyr as 
Warbuck's secretary, amanuensis 
and last-reel sweetheart. And 
Punjab and Asp (Geoffrey 
Holder and Roger Minami) run 
silent run deep through the plot 
as the mystic-Orient servants 
ever providing ' miraculous 
succour in the nick of time, like 
a mixture of Jeeves and the U.S. 
Cavalry. 

Twice only does the film run 
aground. Once when Tim Curry 
and Bernadette Peters enter 
with many a suave snarl and 
hand-me-down bo-ho as the 
wicked couple who pretend to 
be Annie’s real parents. (They 
should return to the acting class 
from whence they came.) The 
other time, when Warbucks. 
Annie and retinue hire Radio 
City Music Hall for the night, 
for a private showing of Camille. 
Acres of depressing seat-space, 
and Garbo giving up the ghost 
with mezzo coughs and moon- 


ing on screen. Sometimes ideas 
for a great night out don’t quite 
work out. 

. Byt around these twain 
casualty-points the film is full of 
■address and jeuuc&st?. The show- 
stopping ditty “Tomorrow” is 
sprinkled sagaciously through 
the two-hour traffic, and who 
could resist the moment when 
Franklin D. Roosevelt and 
Eleanor join Annie in a White 
House ensemble of the song, 
capped by Eleanor’s swooning 
exclamation " Ob Franklin! . . 
and the immediate baptism, 
endorsed by Annie, of the New 
DeaL 

★ 

Porky's should be dropped 
from a great height on the 
heads of its assembled east, 
crew and writer-director. 
Canadian Bob Clark (of 
Tribute) penned and lensed this 
romp for the retarded, in which 
a gaggle of high-school hoys 
discover the joys of voyeurism, 
truancy, teacher-baiting, 

property destruction and racial 
bigotry (and/or beating up 
racial bigots). The standard of 
the film's humour is illustrated 
by such witty punning character- 
names as Miss Bolbraker 
(macho gym-mistress j and by 
many an uproarious jape involv- 
ing dropped trousers, dunking 
in swamps and the impact of 
soft-boiled eggs on human 
physiognomies. 

★ 

It makes one yearn for the 
sophistication of Jacques Tati, 
who by generous foresight has 
been brought to London this 
month: en-celluloided in a sea- 
son of the quizzical, gawky pipe- 
smoker's best films. Tati, 
humanity's answer to the Lean- 
ing Tower oF Pisa, made slow, 
funny, delicare-as-egsshell gags 
that demand patience and 
nearly always repay' it. Enjoy 
his air of deranged and un- 
flappable politeness in Jour dc 
Fete, where he plays a disaster- 
prone village postman; in Play- 
time, where he comes to grips 
with the modern city (which 
trembles nervously in his 
hands): and in Mon Oncle. 
where chic suburban living is 
weighed in the balance and 
found wanting — and receiving— 
a dose of Tati anarchy. 



Aileen Quinn with. Sandy 


Northern Ballet Theatre/Sadler’s Wells 

Clement Crisp 


North rin Ballet' Theatre's 
season in Rosebery Avenue 
opened last week with, for me, 
their insupportable Cinderella, 
and there followed the com- 
pany midsummer Night's 
Dream, to which I can award 
few bouquets. I am doubly 
happy, then, to report that the 
programme which ends their 
Sadler's Wells stay this week 
begins with a poetic and well- 
reasoned Les Sylphides. The 
staging is by Dame Alicia 
Markova, and in that fact we 
have all the explanation we 
need for the sweetly aspiring 
dancing of the corps de ballet. 


for the nuances of phrasing 
which sustain the expansive 
account of the score, and for the 
continued freshness of Fokine's 
imagery- Markova has trans- 
mitted to her cast — led by 
Cynthia Harvey and Ross 
Stretton. guests from American 
Ballet Theatre — something of 
her own impalpable grace in 
this ballet — which she learned 
from Fokine and preserves in 
his final editing. It is, and how 
rare it is. a production in which 
stylistic understanding unites 
the cast. ■ 

Nothing else in the evening 
made much sense. Attraction 


is a piece for four dancers by 
Michael Pink, set to Michael 
Berkeley's first string quartet 
Given its first performance at 
last year’s Cheltenham Festival, 
it proposes a game of not very 
musical chairs in which a 
couple — Lynn Jezzard and Mar- 
tin Gumett— -become involved, 
variously, with Another Woman 
and Another Man (Alexandra 
Worrall and David Needham). 
Dutiful emoting to dutiful 
choreography does nothing to 
persuade me of any interest of 
the characters 

Some of the rampaging in the 
succeeding Le Corsaire duet 


might not have come amiss. 
This found Sui Kan Chiang, 
who had danced a rapt Prelude 
in Les Sylphides, being yearned 
at by William Starrett, a guest 
with NBT, who barged 
vehemently about the stage but' 
did not persuade me that he 
should be doing so. Both artists 
also joined in the final Faust 
Divertimento which offers 
Gounod’s adorable ballet music 
transformed from a romp for 
furry-b loom e red satyro and 
ladies in tulle — with which the 
Bolshoy used to delight us — 
into a plotless - display of 
academic platitudes by Andre 
Prokovsky. 


i * 


THEATRES 


ALBERT. S. Alr-COOd. aMM7J.CC 930 
9232-379 6565. Gro ttfcpi 639 3092- 
ail 3W2. *5* 7.30. Thor 4 ht Ml! 
S o. OLIVER COTTON, . 

Elizabeth OuInn actress of thT 

Y EAR to A no* PHY • 5WET T961. ■ 

aLSWYCH. S 836 6404- CC 370 6233. 

jjgjr oT^ttc 

tto 


Well 1 sITr so’ "Wed~m*t" 2 ttr' BrtM 
Ei Sri iis. E6.5oY £5. Hurryi Swson 
V Kt*t*td till AujKOt 7 


fit 


CAMBRIDGE. CC 01-836 1488-6056. 

SUSANNAH YORK, TOM BELL. TOM 
BAKER. RALPH . BATES.- PAULA 
WILCOX 4. IRENE HANOL In HEDDA 
GABLER. Last 2 uncles. Eves 8.0. riwr 
& Sa: S.O A 8-0- 


CHICHESTER FESTIVAL THEATRE .0243 
781312. Sc*sOn sponsored by Martini 
ST Roui LtdTvALMOUTH. Tonight 7.30. 


CARMEN. 0 '’' 'mAKBOPUVO? CASE.’ 
BARBER OF SEVILLE. Box Office Odens 
today. - 


AMBASSADORS. S' CC 836 1171. Grp 
t**V£ ROSEMARY ifeACrt! DAVIP 

iwFT?« ChSiNG OU« 

Hctrrr Hand, over aso rERFoa- 
' MANGES- ___ 


•at 


CLARK, J4W tf "»\o m MVt**‘w«i *6*54? 

wasssri j 

. Crrtrt card* 01-836 

WURSS-isS 

redrew 

S^JawSarusK: 

104*. B 

*»■* TOE SW Sk»RT& 

FRIEND* IN a tto avail 

MH* am ter ail unJM 30 ; 

. PKcMftliv. . — 1 

taH» -*oU*h« 5 % WV 

106 Or Rraaifcaimrc LBiK*ria v 43 * 

1047 HMwIKn A D. 

MM*, avail. 


COMEDY THEATRE. _S._B.SOJ2 5 7 6.. 

5at 6.15. 

TBW 3. Sat 5.15. Prise 6260-67.00 
Ildr 


card bookings 83J M38- Gtp »la s 
6061. Mon-Fri 6.00. Sat 6.15. Mi 
‘ 62-50-67.1 


Mats 


mot luFUMe <or children). STEAMING 
by NELL DUNN. 


COVENT CARDEN. S 24D 1066. AeCMff 
visa 836 6903. G5 amphlsean avail lor 
all perl* iMon-Sall Iron 10am on the 
d«y. THE ROYAL OPERA- T«l t 4 Tuts 
■t 7.30 FaWair- tomor at 7.30. Dw 
FrcUenul*. Mon at 7.30. La Bolrama. 
Wed at 7.30. La Scow mho la. 


BATTERSEA PARK BIG TOP, 240 1066 
Access/ Visa 836 6903. BOX Oltley Open 

«S& ' 

SST “r ballet/ 
at 7.50. tomor at 2.00 6 7.30. 
Romeo and Joliet. Mon A Tuts at 7.30, 
vSSfTSt 2JJl5 * 7.30. Manor!. T hurt at 
7.30. Napoli DlyerwawaBL Scenes de 

raMIESt'ib" 

park. July 27'Autwt 7. Am Die free 
paramo nearby. 


CRITERION. S. Att- CWd, 930 SZ16,' CC 
379 G36S- Grp. redaction 836 3962.. 

A &JKE-W2 -saM 

a*, sassf jffl as ^ 


DOHMAR WAREHOUSE, dj Eulham St. 
SCC 01.836 1071 379 6355. ALFRED 
MARKS in AUNT' MARY hy Pam -Gera. 
Evh 8. Mat Thun 3. Sal fi A B.lS. 


DRURY LANE Tbetare Roval. CC 01-S3G 
3108. Cre aajw 379 Effll. TI M CURRY. 
PAMELA STEPHENSON. GfltMGE COLE 
ANNIE ROSS . In THE PIRATES Of 
PENZANCE. EVe* 7JJL Mas Wed * 
Sat 3,0. Credit card Hot! lire 93D 9232. 


DUKE or YORK'S. «6 5122. CC 836 

5.“* 

BALTHAZAR- . 

” Or THt LONGEST - RUNNING 


as 

7 AS. Matinees Sat 4.0. 


JfAYMARKET .THEATRE ROYAL. 930 
9B32. Until July 7. Evas 7.30. Mali W?d 
2.30. Sats 4.0. PETER BARK WORTH. 
ANTHONY, QUAYLE. MICHAEL 
DENISON In A COAT OF VARNISH. A 
new olJV by Ronald Miller, suageslrd 
by a novel by C. P. Snow. Dtr by 
ANTHONY QUAYLE. RUNNING IN 
REPERTOIRE ~WITH HOBSON S CHOICE 
& CAPTAIN BRASSROUND. 


HAYMARKET THEATRE ROYAL- 950 
9832. LAST TWO WEEKS. Efts 7.30 
Mats WM 2.30. Sat 4.O.- PENELOPE 
KEITH. AMTHOrnr QUAYLE. TREVOR 
PEACOCK In HOBSON'S CHOICE. A 
Comedy hv Harold Bf bUmik, Directed 

fay Ranald Evre. Running m re p ertoire 

with Captain BraBbotmd and Uncle Vanya 


HAYMARKET THEATRE - ROYAL. 930 
9832. July 22 to July II. PENELOPE 

brassbound-s 

CONVERSION By Bernard Shaw. 
Directed tov Frank Nauser. 


HAYMARKET THEATRE ROYAL. 930 
9832. August 3 to September 4. 
DONALD SlMDSN. FRANCES DE }ji 
TOUR. RONALD PICKUP. SHEILA GI5H, 
WLLFRA^. MARGARET RAWLINGS! 
fR ED A J A CKSON , HARRY ANDREWS 
LT . By Anton Chekhov. 

Directed by Christopher Fonts. 


HER MAJESTY’S. Air-tend. 930 6606-7. 
Groan sale* 37a 6061. Eves 7.30. 5a: 

r t AMADEUS 

. «TiR shaffkr. Directed bv 


m* Credit card Hotlines 93D 

9232 or 930 4025-B. 


7 ' Show 

8- MARRY ME A LITTLE songs by 
Stephen Sondheim. 


NEW LONDON. CC Drury Lane. WC2. 
01-405 0072 or 01-404 4079. Eirs 7-45. 
Tims and Sat 3.0 A 7.45. Tbe Andrew 
Uovd-Wfaber-T. S. Eliot Award Winning 
musical CATS- Grouo bookings 01-405 
1567 or 01-379 6061. LATECOMERS 
NOT ADMITTED WHILE AUDITORIUM 
IS IN MOTION. PLEASE KE PROMPT. 
NOW BOOKING TILL JAN. SSL 


OPEN AIR REGENTS PARK. S 486 2431 
Instant credit card bolclngx 930 0232 
A MIDSUMMER NIGHTS DREAM 
tonight 7 .45. Sat 2.30 A 7.45. 


PALACE. CC 0.1-437. 6634. CC HaUlM 
437 8527. Andrew Lloyd-Webber's SONG 
AND DANCE Starring Marti Webb & 
e. Sleep. Due to overwhelming 


demand ran new extended to Januarv 
1963. E*« 8-0, Fri * Sat SAS& 8.50. 
Some good seats . still avail able mast 
peris. Group sales 437 6834. 379 6061. 


PHOENIX THEATRE (Charing Crou Read) 
01*836 2294-0611. Eves BJ>. Fri & Sat 
6.D & 3-0. ONE MO' TIME! THE GREAT 
NEW ORLEANS MUSICAL ONE Mg' 
TIME IS A GOOD TIME! Grom sates 
01-379 6061. Ring Teledata 01-200 
0200 tor instant confirmed CC bookings 
24-how personal service available. Last 
*b. Special students and OAP dHcooirt. 


PICCADILLY. S. Air-Cond. 4S7 4906. CC 
379 6565, Group nles .01-836 3962. 
379 6061. Pres tel bfcfts Key 220 2324. 
Mon-Fri 7.30. Mats Wed 3.0. Sat 5.30 
& 8.1S. Students £3-50 In advance. 
ROYAL SHAKESPEARE COMPANY jq 
Wlllv Russell's new u> pretty EDUCATING 
RITA. RSC alio at Aldwych-Barbican. 


wshaijm 

M «ie»l Cvgi 7.30- Mat Wed 

fihd Sat 2. 45. Use the Barnum Hotlines 
01-437 2055. 01-734 8961 tor Instant 
credit ICWB reservations. NOW BOOKING 
TO FEBRUARY 5.1983. 


LYRIC THEATRt Shaftesbury Ave. Bo* 
Office 437 3686- Tel. Credit card 
bkm acMptad. GLENDA JACKSON. 
CtORC'NA HALE .In SUMMIT CON- 
FERENCE- A new play hy Robert David 
MacDonald, Evfii S.O. Mao Wed 3.0. 
Sat 5>0< 


MAY FAIR. S CC 629 3036- Mpn-Thura 
8.00, Fri and Sat-6 5 8-30- Rlcnard Todd 
D?^®n Nls6lte Carote Mowlam jn THE 

G^T^EAR* S£C0HD 


cf* 

£n«n°5i« S“ ^up^’i^'Bo^oraF aw 

6061- Credit cars . bosklnm 930 9232. 


I*?' IN"f*rf" 'WORLD. ' NO SEX 
WTRE ORITI5H t ..O Keeled .JW 


NATIONAL THEATRE. S 928 2252. 

OLIVIER leoen stage) TonT 7.1 S. Tomor 
2-00 4. 7j1S DON QUIXOTE bv OwsanteS 
LYTTELTON I pr parent am stage) Last 9 
PertS TOnt 745, Tomor 3 00 A 7.4S 
then Mow. July ig, 20. 21 mSc. 22 
THE SECOND MRS TANQUEKAY trt 
PHMTO. 

COTTESUSE ismall auditoriu m — l ow twite 
Uftol TftpX 7 JO. Tomor 2.36 4, 7.30 
THE BEGGAR'S OPERA By John Giv. 
Excellent .cheap seats nay of p erf ail 3 
imer standby from loam 
Car park. Restaurant 928 


PRINCE, EDWARD. Tim Rice and Andrew 
Lloyd'Webber'5 EVITA. Dtr by Hat 
Prince. Evgs 8.8. Economy price Matt 
Thor 8 Sat 3.0. Em peris ends 10.15. 
Bos OSice 437 6877. CC Hotline 439 
8499. Gro sales 379 6061 W B-O insb 
Z4.hr bkos Tciedna 01-200 0200 . 


ROYAL COURT. S CC 730 1745. Prcvs 
Toot. Tomor S.O. Oonu Mon 7.0. Sob 


Evas S.O. ~IN SIGNIFICANCE 
Johnson. 


bv Terry 


ROYAL COURT THEATRE UPSTAIRS. 
730 2354. O! FOR ENGLAND bv 

Trew Griffith*. Last 2 Pwts Ton'L 
Tomor 7 JO. ah seats £2. 


SADLER'S WELLS THEATRE. EC1. CC 
01-278 8916 (5 llneil Grp Sates, 379 
6061. 24 Hr Instantly confirmed res 
01-200 0200. 


NORTHERN BALLET THEATRE. Last 
PerfsL TonT 7 JO. Tomor 2.30 8, 7.30! 
Les Sy Iphidasi Attraction! Le CersalraiFaun 
Divertimento. 

Royal Ballet School 26 to 31 July. 

3rd Dance Subscription now open The 
beet dance series mr" ring 01-278 0855 
(24 hrsi for brochure. 

AMPLE nil PARKING after 6.30 pm. 


SAVOY. S 01-836 8888. CC 930 9232. 
Evenings 7.4S. Mats Wed 2.30. Sat 
5.0. £50. MICHAEL FRAYN'S NEW 

COMEDY NOISES OFF. Directed by 
MICHAEL BLAKEMORE. 


ST. GEORGE'S SHAKESPEAREAN I TH. 
01-607 1128. Peris 7.30 pm. MACBETH 
Thursday. TWELFTH NIGHT Ton'L 


*T. MARTIN'S. CC 856 14di Evgs 8. 
Tm* mat_ 2.45. saturdavs 5 t 8. 
ABattn Chrtftla'S THE MOUSETRAP, 
world’s tongut-ever run. 30th Year. 
Polly air-conditioned theatre. 


VAUDEVILLE, CC 01-836 9988. Eves 8. 
Wed mats 2.45. £au 5 & 8. GORDON 
JACKSON In AGATHA _ CHRISTIE'S 
CARDS ON THE TABL 


Conditioned theatre. 


BLE. Fully air 


PRINCE. OP WALES THEATRE.. 930 


VICTORIA PALACE. CC 01-834, 1317-8. 
01-828 4735-6. Group sales 379 

6061 . DENNIS WATERMAN. ANTON 
RODGERS. The New* Musical WINDY 
\ CITY, baled DO Die ptlY. TM Front 
I Page. Directed bv Peter Wood. PRE- 
vtews FROM TONIGHT. OPENS JULY 
| 20 at .7.00. sub nigiHiv at 7. so pm. 
; H*t Wed 3 Sat 3 pm. Credit card 
Hotline 930 9232. 


8681. CC Hatlhir 930 0846 nr Tdedatt 
01-200 0200 (24-hr hteu. G roup Sales 
01-379 6061 ROY HODD CHRISTOPHER 


TIMOTHY m UNDERNEATH THE 
ARCHES. Evgs M On- Thors 7.30. Fri A 
Sat at S.15 and 8-30. 


QUEEN'S- S. CC 01-734 1 166. 439 
4031. OvcHt cards 01-930 9232.. wram 
Mtoa 01-379 6061. Eventnos 8.0 0. Mat 
Wed 3 00 . Sat 5.30 i. 8 JO , ANOTHER 
COUNTRY by Jplian Mitchell. 


RAYMOND RCVUEBAR. CC 01-734 1593 
At 7.00. 9.00 add 1 1 .00 pm. Open 
Suns- PAUL RAYMOND presem* THE 
FESTIVAL OF EROTICA. Special con- 
cession to members of HM Armed Forces. 
Admimiofl £1.00 W My .7 Pm Pert, 
25th senuuttta) year. 


2033. Credit card Kgs 028 5933. 
NT also at HER MAJESTY *5. 


ROUND HOUSE. 287 2S64. TALKING 
■AND OF HEW YORK in GIOCONDA 
& SJ-YA-U and TRISTAN AND ISOLT. 
Evfis 8-0. Moat end July 24, 


WESTMINSTER, CC 854 0283 HANNAH 
GORDON. GWEN WATFORD. PAUL 
“ANEMAN. JOHN dARSON, in THE 
jeweller's Shop by Pone John Pan! 
If. Evgs 7 AS. Matt Wed 6 Sat 2.30. 


A B^Snm. 


WYNPHAHTS 
279 GB8S. _ 
Mon-Fri 7JO 


Hr-eanO- 5 836 3028. CC 
lions '836 3962. 


Mflw-Fr! 7-30 Saa 4 jQ A 8.00. .Wed 
mat a,s@. riecord* UK run tor any 
MUter play. LAST 4 WEEKS. COLIN 
BLAKELY. ROSEMARY -HARRIS in 
ARTHUR MILLER'S ALL MY SONS. 
Oireced by Michael Blakemore. 


sr» jssssrkjffbsx 3 Mnri Fw{ 


F.T. CROSSWORD 
PUZZLE No. 4j918 

ACROSS 

1 Arrived with soldiers in -a 
vaulted room (6) 

4 Paddy, without right, creates 
an area of frozen water 
(3-5) 

10 Fruit that soldiers have to 
throw away? (9) 

11 Stomach a bit of rubbish (5) 

12 Bill for a magistrate (4) 

23 The lowest depths of despair 
could shake Shakespeare’s 
weaver (4-6) ■ 

15 Left over that peculiar 
people take initially (7) 

16 Look closely, that is, for a 
Scottish peg-top (6) 

19 The time to. flavour 22 
Down? (6) 

21 Very intelligent about a 
chopper (7) 

23sMan of action in the main? 
(10) -■■■ ; ' - • - - - • 

23 Burden that is ours (4) .^ _ 

27 Distribute a product (&«■ 

28 Architectural •' decoration 

.that sounds like a flax field 
(54) ' - „ ■ 

29 A bit- immature -■'but. 
envious (8). 

30 One who asks earnestly for.. 

. ...'i^BOlatiire (6) .... 

DOWN ... 

■ 1 Perfret transcfipt to reserve; 
(81.- 

2 Treat roughly a soldier with . 
feeling (9) '. 

3- Raise- the end (4) 

5 Investigate an examination 

- (5-2) 

S Having put on weight 
the house should 



show how deep it is in the 
main (10) 

7 Expel eastern leader to 

; Victoria (5) 

8 If ad visions of doctor joining 

u .- teSm (6) . 

9 ShMt- a descendant (6) 

I4 JTish that dwells encourage 

. (5-7) , 

17 Origi n ate ■ nought on railway 
hut. a catalogue' (9) 

■18 Cause right for.- a valiant 
enthusiast (8) . . “ . 

20 Pools name abundance (7) 

21 Card game that’s a sin in 
company (6) 

22 Skip 9 D own (6) 

2* Refuse to shrink (5) 


26 Snarl a row on the way up 
(4) 

Solution to Puzzle No. 4,917 


mi 'HafflHHfaQisi 


n 

abaci 

b a 

330 

a □ 

SSSSSMna- SGEBBR 







Financial Times Friday July 9 1382. 


FINANC3AL1TMES 

BRACKEN HOUSE: CANNON STREET, LONDON EC4P4SY 
• Telegrams: Rnantirno, London reiTetec 8954871 
Telephone: 01-2488000 


Friday July 9 1982 


EUROPE’S BANK WORKERS 


Costs of a cashless 



Polish debt; 
game of bluff 


THE LATEST chapter in the 
Polish debt saga opened this 
week with the meeting in 
Vienna of Western bankers and 
Polish officials to discuss 
rescheduling at least part of 
Poland’s 1982 debts. The pros- 
pects are not good. The pros- 
supposed to repay a total of 
nearly $7bn in principal and 
SStm in interest on its con- 
vertible currency debt this year, 
but with no new credits and 
few hard currency earnings 
exports it cannot scrape to- 
gether enough to pay the full 
interest amount. Yet, it is 
essential that rescheduling get 
under way and that western 
governments join the discus- 
sions. 

The fact that the Vienna 
meeting took place at all is a 
concession on both sides. Last 
year the commercial bankers 
Insisted that their governments 
must make the first move and 
reschedule that part of Poland’s 
1981 debt which is officially 
guaranteed, before Poland's 
1981 commercial debt could be 
rescheduled. 

The rationale for this 
insistence by the bankers still 
holds good. Should governments, 
the U.S. for instance, choose In 
call Poland formally in default 
the bankers would be left at 
the end of the queue of claim- 
ants on Polish assets, bolding a 
worthless Polish promise of 
repayment in several years time. 

Pressure 

However. following the 
imposition of martial law in 
Poland last December, the 
Western governments refused 
to talk about rescheduling their 
portion of Poland's 1982 debt 
With some of their number 
worried, the effect on their 
balance sheets of continuing to 
get - no return— not even 
interest— on their Polish loans, 
the Western banks have gone 
back to the negotiating table. 

For its part the Jaruzelski 
government initially said it 
would not reschedule with the 
Western banks unless it did so 
hi tandem with the Western 
governments. This was in part 
a device to use Western bankers 
as pressure against the Nato 
sanctions on Poland which, in 
addition to a refusal to 
reschedule official debt include 
a freeze on new credit to 
Poland. But Western govern- 
ments have held firm, and so 
Poland has concluded it has 
something to gain from even 
a partial rescheduling. 

The question for western 
governments is whether holding 
firm means as much now. after 
seven months of martial law. 
The Lebanese and Falklands 
wars have lessened international 
attention, and therefore to some 
extent pressure, on Poland. It 


is true that such pressure was 
a factor behind General Jaxuzd- 
ski's moves in early May to free 
some internees and partially to 
relax the curfew. But this 
liberalisation came to a dead 
stop when it became Hpsn- that 
the Polish people did not feel 
grateful, but merely freer to ex- 
press their feelings in street 
protests. Hints of a further re- 
laxation of marital law later this 
month have been made in War- 
saw, but if Ms materialises it 
is tfkely to be minor. 

Creditors 

Thus. Western governments 
are unlikely soon to get fee lift- 
ing of martial law, release of 
internees and resumption by 
General Jaruzelski of dialogue 
with Solidarity and the Church 
— the three conditions. Nato set 
for removing economic sanc- 
tions. In these gloomy circum- 
stances, Western gov e rnments 
would do better to discuss re- 
scheduling, which actually 
places more of a financial con- 
straint on Poland than refusing 
to discuss its debts. 

Poland is at present getting 
off soot free on its debts, while 
rescheduling would require it to 
pay at least some interest and 
fees to its creditors. Besides, 
tihe present impasse is placing 
a great strain on the 500 banks 
involved, some of whom might 
soon be tempted to break ranks 
and go their separate ways, 
either calling a default or doing 
individual deals with Warsaw. 
A uniform approach remains 
vital 

The Western negotiating hand 
is not as weak as is sometimes 
supposed, and there is no 
reason for Poland to be allowed 
to get away with its demand for 
postponement of all interest as 
well as principal this year. 

The ultimate threat of the 
West calling Poland in default 
initially appeared an empty one 
in Warsaw, and in Moscow, to 
the extent that the West was 
worried about the effect of de- 
fault on its own finanriat system. 
But anxieties that Poland could 
precipitate a collapse in Western 
banking are less marked than 
they were a year ago, as banks 
are begmnizq* to write off some 
of their Polish loans. 

Equally, for Poland to declare 
a moratorium or default on its 
debts would have widespread 
ramifications for all Comecon 
countries, a fact of which the 
Soviet Union, the bloc leader, 
must be reminding the Polish 
government Such an action 
would virtually rule out Poland 
ever succeeding in its applica- 
tion to join the International 
Monetary Fund. In view of the 
potential significance one day of 
the -IMF to Polish recovery, it 
seems unlikely Poland would 
want to forego this potential 
source of finance. 


U.S. flirts with 
single-rate tax 

THE IDEA of a single-rate in- than no bread; end the experi- 
come tax, without exemptions, xnent in general would be fas- 
which President Reagan has cinating. 


pronounced “interesting” is 
rapidly gaining ground across 
a remarkably broad range of 
American opinion. Since it 
could also provide some relief 
cm the interest rate front, the 
debate is of more than curiosity 
value on this side of the 
Atlantic. 

The present combination of 
high marginal rates and 
generous exemptions, which is 
broadly the rule in all Western 
countries, has grown up for 
■what has seemed the best of 
reasons — the desire for a pro- 
gressive tax system, the grow- 
ing demand for welfare, defence 
and education, and the desire to 
provide incentives for particular 
forms of behaviour be it con- 
tractual saving or owner-occu- 
pation. 

The result, unfortunately, is 
bought at a heavy cost, for the 
system as a whole combines high 
disincentives at the margin with 
low efficiency. In this country 
the known tax expenditures on 
personal allowances, mortgage 
relief, pension provision and 
the rest eat up half the poten- 
tial revenue of income tax. In 
America, where exemptions are 
more widespread, the effect is 
still more expensive. 

International 

One allowance is an inter- 
national matter; the exemption 
of interest payments on per- 
sonal borrowing. This halves 
the cost of debt service for 
most large borrowers and con- 
sequently raises the level of 
U.S. interest rates needed to 
obtain any given degree of 
credit restraint The OECD, 
speaking for most European 
finance ministries, and a grow- 
ing number of Americans— in- 
el trdmg a H the governors of the 
Fed— would like to see this 
allowance abolished, preferably 
to help dose the fiscal gap. 

The single-rate proposal 
would offer half this benefit: 
it would abolish the incentive 
to borrow, but hand back the 
proceeds to taxpayers, or so 
it is to be presumed. Even 
this half loaf would be -better 


A single-rate tax at perhaps 
15 per cent has an obvious 
appeal for the President, who 
believes strongly in cash in- 
centives. It also appeals to 
more liberal political minds for 
rather different reasons. It 
would put an end to the spec- 
tacle of the rich avoiding their 
obligations by borrowing, or 
buying oil walls for the de- 
pletion allowances or businesses 
for their accumulated losses. It 
might also make it politically 
easier to finance more liberal 
expenditure programmes. 

This last point is obviously 
a warning as well as a promise. 
Efficient taxes, like efficient (in- 
dexed) government borrowing, 
are politically neutral; they are’ 
of the same potential value to 
privatisers and high spenders. - 
Inefficient systems are beloved 
of civil servants because they 
restrain the wilder actions of 
elected governments. The single- 
tax proposal can thus be seen 
as genuinely radical and risky. 

Exemptions 

However, the personal incen- 
tive effects of much lower mar- i 
ginal rates might well be < 
dramatic— and they need not be i 
single rates. The idea of financ- , 
in? tax cuts by reducing exerap- j 
tkras is quite distinct from the 
argument for a single, uniform 
rate. In Ms country, for ex- 
ample, a bonfire of exemptions 
— including the now redundant 
allowances for family respon- 
sibilities — would make it pos- 
sible to out aH tax rates by lOp 
without loss of revenue, main- 
taining a progressive structure, 
with a universal personal allow- 
ance at the present level Tbs 
would help those caught in the 
poverty trap as well as the rich. 

Tbe many variations on tins 
theme — a single rate, a single 
rate plus an effective wealth 
tax, or a negative income tax 
with a higher rate— ore the 
stuff of much future debate; 
but the idea of attacking the 
sacred herd of the fiscal system, 
the long list of tax expendi- 
tures, does look like an idea 
whose time has come. 


By Brian Groom, Labour Staff 


H OW MANY jobs will tie 
rashness society cost?. 
Hus is a profound worry 
for employees in the finance 
industry— partkulariy those in 
the sprawling l&bour^ntenaive 
branch banking networks of 
Britain and Western Europe. 

They fear an . electronic holo- 
caust. Or, to be precise, acti- 
vists in a -Dumber of their 
unions do. Meetings have be- 
come dominated by the "threat” 
to the number and quality of 
jobs, which many believe wffl 
swamp issu es such es pay. 

The UK’s Banking, Insurance 
and Finance Union (Bifu), one 
of the loudest voices, wans of 
a catastrophe if new technology 
continues to be introduced on 
employers' terms. Although 
European unions are sot united 
on the extent of the toreat, 
end acknowledge that fufi auto- 
mation is far off, many others 
ere worried. 

Mr Fritz Johansen, of Nor- 
way’s NBF, remarked la collat- 
ing responses from members of 
Fiet — the private sector white- 
collar workers' interna tiona l—- 
that European bank employ- 
meat may be decimated in the 
next decade. In the longer term 
be envisages “perhaps even a 
banking, network without 
maimed branches.” 

Most unions insist they are 
not Luddites, and welcome new 
technology on what they re- 
gard as acceptable terms — by 
negotiation, with guaranteed 
job security, and with benefits 
passed on to workers, particu- 
larly in reduced working hours. 

But last October represen- 
tatives of L7m bank workers 
worldwide voted at a Fiet con- 
ference in Lisbon to back direct 
action against the introduction 
of new electronic equipment if 
employers refused to consult 
them. New technology has re- 
cently sparked off disputes in 
Ireland and the Netherlands. 

Also in Lisbon, representa- 
tives of insurance workers— 
affected by parallel changes— 
called for a similar policy of 
non-cooperation. 

Banks have three replies. 
First, many argue there is no 
prospective threat to jobs. 
Barclays Bank UK, Europe’s 
biggest banking employer, 
believes that an underlying 1 
to 2 per emit growth in staff 
will continue for the foresee- 
able future. 

Second, banks say, jobs 
certainly would be jeopardised 
if they failed to keep pace with 
their competitors’ technological 
developments. And third, as 
Barclays* chairman, Mr Deryk 
Weyer, put it: “The cashless 
society will remain a myth for 
as long as we can see.” 

That does not rule out, how- 
ever, a society which uses less 
cash and fewer cheques. A 
worldwide tapestry of cash dis- 
pensers, home banking, elec- 
tronic payment for shopping, 
and payment of bills by tele- 
phone is being woven. The 
inset panel is only a sample of 
the developments. 

Retail banking is the growth 
prospect of the decade. The 
winners will be those— not 
necessarily traditional banks — 
which seize the most efficient 
technological opportunities to 
exploit it. 


THE THREATS" TO STAFF JOBS 


• POINT-OF-SALE TERMINALS. 
The sine qua non of the cashless 
society. Shoppers use * card at 
check-out computer termin als in 
stores and supermarkets, directly 
debiting bank accounts to pay for 
goods. English clearing banks have 
linked up to plan the Introduction 

of a UK wide system ht three to 

five years, but questions remain, hi 
spite of limited schemes in the UA. 
and Europe, not yet a widespread 
reality. 

• AUTOMATED TELLER 

MACHINES (ATMs). Electronic 
seff-servtee tilts sprouting through 
the wafb of bank branches and else- 
where. hi Japan, which hat 2SJMJ0 
of them, they fine- tile walb of bank 
hails. A German study estimated 
each ATM displaced 1.32 toll time 
staff. Britain’s National Westmin- 
ster Bank b considering this at a 
shopping centre branch, where 
space « limited and business unso- 
phisticated. 

• IN-STORE BANKING. Britan* 
Banking, Insurance and Finance 
Union says the growing installation 
of ATMs (and some counter termi- 
nals) in factories, hospitals, stores 
and supermarkets — filled by shop 
workers— will mean “the psosiblc 


closure of bank offices and a reduc- 
tion in bank jobs.’* Scmte retailers 
are tiientsehro starting to follow 
tiie route charted by Scare Roebuck 
In the U5* by offering financial 
sennas paralleling those of banks. 

• BRANCH COMRUTBUSATtON. 
Back offices In UK bank branches 
remain much as Dad’s Army's Cap- 
tain Mainwaring would remember 
them. But nrira-computen and 
word process o i * aliea d y used m 
insurance are on tire way. Nat- 
west is introducing the IBM 8100 
computer m 51 branches for , 
customer records. It may be the 
begmafng of the end-tor dog eared 
files— and much routine branch 
work. 

• HOME /-OFFICE BANKING. Citi- 
bank and Chcmkai Bank are among 
US. banks experimenting with 
customers carrying out transactions 
at home on computer tormina Is. 
ftdiities are already on offer to 
corporate cm to m ere of 'many US. 
banks. In West Germany more 
than 3,000 bank customers play at . 
bank tellers at home by means of 
view data. British banks are an- 
sidering their options, but may 
come up with something short of 
toll'home banking. Many European 
banks are hesitating. ' 



Hugh Sou Uadpe 
Customer dealing with a NatWcst Servic^tfll 


“The only way to serve the 
mass of consumers economically 
is through lie provision of cash, 
loans and savings facilities by 
electronic and mechanical 
.means with the minimum of 
'personnel and real estate,” says 
Mir Weyer. 

Pressures forcing the world’s 
hawfe* to examine staff costs 
include inflation, the cost of 
funds, competition from non- 
bahts- and quasi-hanks, and the 
Increas ing willmgess of cus- 
tomers to shop around. 

Mr Bill Turner, a principal in 
the London office of McKinsey,' 
the business consultants, said 
this spring that the easy profits 
of European banks in “cartel- 
like environments” were com- 
ing to an 1 end. They would face 
competition like that which 
already confronts U.S. banks, he 
said. 

Mr Eckert van Hooven. a 
manag in g director of Deutsche 
Bank in Germany, at the same 
conference, attacked Mr Tur- 
ner’s analysis as, “ h ighly 
theoretical and ridiculous.” 
European banks had more to 
offer private customers* than 
U.S. banks, he said. 

But several bankers 
-with Mr Turner. It is 
surprising, therefore, tbht 
unions are nervous. Nearly 80 
per cent off European hank jobs 
are in branches. 

In Mr van Hooven’a own 
country, the DAG union, 
believes 5 to 10 per cent of the 
44,000 branches will dose dur- 
ing the 1980s and that 10 per 
cent of the 500,000 employees 
in the credit sector will be 
made redundant 

It calculates that the cost of 
running a self-service branch is 
DM80 .000-100,000 a year 
(£18,700423,300) , compared 
with DM 350,000400.000 for a 
five-person branch- This helps 
to explain why technology is 
the banks’ main answer both 


to competitors which start with- 
out cumbersome branch _ net- 
works, and to their own need 
to contain costs. 

Staff costs are high through- 
out Europe. In . the English 
^tearing hanks, a cc ou n t for 
two-thirds of operating costs. 
According to Retail Banker 
International, staff costs of the 
big four rase by between 16 
and 22 per cent in 1B8L- and 
only Lloyds avoided a rise in 
the proportion of personnel 
expenses to net interest 
income. 

a Unions in Britain, Sweden, 
Denmaric, Belgium. Austria, 
France, Norway and Italy say 
branch networks have already 
been under review, and some 
smaller offices dosed. The 
expansion of branch networks 
which occurred up to 1975 has 
virtually stopped, partly 
because of high ratios of 
branches to inhabitants. 

Bankers, although fax from 
united, try to calm union fears 
by arguing that workforces 
have continued to grow during 
20 years of considerable tech- 
nological change, mduding 
computerisation of accounts.' 

In the UK, transactions are 
growing by roughly 7 per cent 


a year, banks say, and staff by 
an underlying 1 to 2 pet cent: 
the gap is covered by -produc- 
tivity gains, mduding those 
from technology, and they see 
no reason- to suppose the pat- 
tern will be broken. 

Tbe unions’, case is therefore 
far from proven— end will re- 
main so as long as the future 
of point-of-sale terminals and 
home banking is uncertain. But 
prima facie, and allowing for 
the uncertainly of the time- 
scale, their argument that em- 
ployment levels will fall is 
strong, for two reasons. 

First, there is the sheer 
number of potential develop- 
ments: if all came to fruition, 
the effect would be revolution- 
ary. And seednd, the rapid 
growth in staff since 1960 is 
already stagnating. 

This is not necessarily be- 
cause of technology — the near- 
saturation of some bank net- 
works is a factor— but it means 
that any major technological, 
labour-saving changes in future 
could actually cut workforces, 
rather than simply curb their 
growth. 

According to the European 
Trade Union Institute, banteng 


EUROPE’S BIGGEST BANK EMPLOYERS 



Rank by assets 



less contra. 

Bank* 

Emptayeesf 

accounts 

Barclays Group 

117,882 

4 

National Westminster Bank 

84,000 

7 

Midland Bank 

82*00 

S 

Lloyds Bank 

86,033 

If 

Credit 'Agricole 

63439 

2 

Banque Nationale'de Paris 

50,701 

1 

Deutsche Bank 

44,800 

6 

Societe Generate 

33JS12 

5 

Dresdner Bank 

31,070 

9 

• Exdudes Credit Lyonnais 

(unavailable) and London-based Standard 

Chartered (54 j& 46>. t Includes some oversees staff. 




Souran Tho Bmnkor 


and insurance staff in Belgium, 
for example, grew by 10.2 per 
cent a year between 1984 and 
1974, but by only 0.7 par cent a 
year in 1974-77- — and the pattern 
was similar, if less starting, for 
other countries. 

Figures ■ foam <tihe English 
clearing banks show that 
between 1960 and 1975. their 
staffs grew at 4.1 pear cent a 
year. In 1975-80, the rate was 
down to 2.4 per cent Now 
Barclays is talking of 1 to 2 
per cent. 

Last year, the staffs of the 
five main English dearer* 
(plus Gantts) fed by 6,500 to 
231,000. Bifu takes this as a 
sign that new technology is 
already beginning to bite The 
banks say it was caused,largdy 
by the recession: they were 
compensating for over-recruit- 
ment the year before, when 
staff turnover fell sharply. 

Some observers believe that as 
many as one-third of European 
banking jobs are at risk. - Many 
unions are vague, however, and 
some highly cautious. Mr Jack 
Brits* general secretary of 
Britain's Clearing Bank Union, 
foresees UK staff numbers 
roughly unrfmaged in 1890, but. 
faffing toy AD 2000. ~But, " he 
says: “We are seeing more 
change than has taken place m 
the banks since the 1800s, at a 
time when the muons are weak 
because of recession and unem- 
ployment” 

So-called “ deskilling” of 
jobs is another factor worry- 
ing unions, although they are 
not unanimous: Danish and 
Austrian ones say technology 
has had a positive effect on 
work skills. Tbe de-skilling 
claim amazes the banks, who 
say technology removes boring 
tasks. 

Union*, none the less, can 
cite examples of “de-skilling.” 
Bifu, in a detailed analysis of 


possible “ post-technology “ jobs 
at Midland Bank, daims that 70 
per cent -of the workload of a 
securities clerk, handling stock* 
and shares, would disappear, 
fo small offices these clerks 
would help market new services, 
Bifu says, but in large -banks 
their numbers would be 
reduced — narrowhiK a promo- 
tion route- for junior clerks, 
who Would become frustrated. 

On present evidence It 
appears unlikely that unions 
win be able to stave off the 
technology “ threat ” or turn it 
to their advantage. Their main 
thrust is to reach “new tech- 
nology agreements'; with 
employers, guaranteeing job 
security and negotiation rights. 

Nordic unions have -been 
successful in .this, although 
some are realising that their 
agreements are open to varying 
interpretation, and wit! need to 
be backed with vigilance and 
strength- But employers ' in 
many countries refuse to 
negotiate at all. 

Some unions acknowledge 
that technological change is 
necessarv, in spite of their 

fears. And those which are 
alarmed have difficulty in alert- 
ing their members to a “threat” 
which is insidious rather than 
dramatic. 

In the UK Bifu. frustrated 
in its attempts to win new 
technology agreements, ii pre- 
pared to back members who 
refuse to accept the imposition 
of technology. But at its annual 
conference In April a caH to 
refuse to operate any equip- 
ment introduced without agree- 
ment was defeated — -because It 
was impossible to guarantee 
members' support. 

An example illustrates why. 
At a recent computer con- 
ference, an activist who had 
worked at National West- 
minster's Surbiton brandi 
claimed that the IBM 8100 
office computer — which stores 
branch records, and was being 
tried ont there-— could cost 1.5 
jobs per branch. Applied across 
the NatWest network, he said, 
it meant possibly “ 4,500 jobs 
down the drain." 

But at Surbiton, there are 
few such fears among staff who 
no longer have to run around 
chasing paper files. Ms Lin 
Oram, manager’s cleric, is a 
Bifu member but ignores half 
its warning* on technology. 
“It’s a load of . rubbish. There’s 
only so much this tittle thing 
can do r “ she" Said. 

This. Bifu says, is its problem! 
staff who comply unquestion- 
ingly with the introduction of 
a new machine may be speed- 
ing up their own obsolescence 
— or someone else’s in another 
part at tbe network. 

Personnel managers, however, 
do not ride out technology 
disputes— -possibly arising 

obliquely out of the UK indus- 
try’s -unsatisfactory negotiating 
set-up, with two rival unions. 

• ’ Nor are further disputes 
ruled out . fa other European 
countries, where, the issue will 
create a difficult industrial rela- 
tions dim ate for the foresee- 
able future. A battle, of course, 
could be disastrous for both 
employers and staff. Com- 
petitors would laugh all the way 


Men & Matters 


HQt water 

The Prime Minister’s lack of 
love and respect for nationalised 
industry chairmen is well 
known. But the treatment 
meted out this week to Sir 
Robert Marshall, chairman of 
the National Water Council, iG 
still remarkable. 

He was only told at 9.30 am 
on Wednesday that the Environ- 
ment Deprtment would that 
afternoon announce its intention 
to abolish his council which co- 
ordinates policy for regional 
water authorities. 

“ I had no inkling or prior 
warning of any sort-— apart from 
an invitation to a meeting at 
the Department on Tuesday 
evening which I couldn’t make,” 
he told me yesterday. “ It came 
totally out of the blue.” 

A former chairman of the 
Nationalised Industries' Chair- 
men's Group (be Is now the 
financial spokesman), Marshall 
deplored the lack of consulta- 
tion. 

But he is used to the cold 
shoulder — Mrs Thatcher 
brusquely dismissed a request 
from him for a personal meet- 
ing in October 1981 on the 
chairmen's salaries, saying she 
was too busy and that he should 
talk to Sir Geoffrey Howe. Mar- 
shall had earlier been out- 
spoken about the problems 
created fay the polarisation of 
political parties’ industrial 
policies. 

The Government plans to 
wind the council up in Septem- 
ber next year when Marshall’s 
current JE21500 a year contract 
expires. Wage negotiations 
will then switch from the 
council to the regional water 
authorities, so possibly reduc- 
ing tiie militant power of water 
workers. 

Marshall and Ms coHeagues 
believe that is a bad idea 
because it -could lead to leap- 
frogging between different 
regional bargaining groups. 
But from Mrs Thatcher’s point 
of view, the combined victories 
of abolishing a quango, losing 


an outspoken nationalised 
industry chairman, and upset- 
ting a trade union clearly win 
the day. 


Out of office 

Breaking the mould of British 
politics is one thing, geeting 
your own room in the House 
of Commons is another. 

Roy Jenkins is said to be Tess 
than amused by the fact that as 
leader of a major minority 
party he should still have 
difficulty In finding an office. 

What makes it worse is that 
he is having to lodge for the 
moment with Mike Thomas, the 
Social Democrat MP far New- 
castle East — and the man who 
managed the leadership cam- 
paign for his rival Dr David 
Owen. 


Gold dust . 

Remember the gold rash in the 
winter of 1979-80 when the price 
doubled to $850 an ounce within 
a few weeks and then slumped 
even more rapidly? There were 
many explanations: the U.S. 
hostages crisis, Afghanistan, 
rumours of a Soviet invasion of 
Iran, a sudden switch of Arab afl 
funds. 

But. it was due to none of 
these, according to a Houston 
lawyer Don Bernard. It was 
caused by a massive manipula- 
tion of the market by the Swiss 
subsittiaiy of a .major world 
hank. 

Bernard says that he and a 
specialist in preckms metals 
Investments, Gordon Briggs, 
were engaged by an anonymous 
Greek billionaire to sell a 2,000 
ton hoard of gold buUion. 

Dumped on the opes market; 
It would have caused a huge 
fall in the gold price. But the 
Greek wanted it sold quickly. 
Bernard and Briggs eventually 
found private buyers and 
devised a method of completing 
the transactions through the 
international banking system. 


This involved bank-tofaank 
letters representing the willing- 
ness and ability of private 
investors to buy 2,000 tons of 
gold. 

In early December 1979, the 
letters were sent to tiie Swiss 
bank. The letters were due to 
be returned within 48 hours. 
A month later, they were still 
missing— and the price of gold 
had rocketed. 

The bank, says Bernard, bad 
used the letters to- manipulate 
the market by representing the 
private sale as a public demand 
for 2J)00 tons of gold. The 
international treasurer of the 
bank did not deny It, but chal- 
lenged them to do anything 
about it 

Bernard brought his story to 
a London publisher in the 
Spring of 19S0 — and it forms tbe 
basis of a readable financial 
thriller, BuUion, by author and 
TV scriptwriter John Goldsmith, 
published yesterday (Sidgwick 
and Jackson £7.50). 

IE truth, in' stranger than 
fiction, it is also sadder. The 
book ends with the heroes turn- 
ing the tables on the banter. 
“ In fact,” the bearded Bernard 
tells me, “most of the gold has 
still not been sold and we never 
got the fortune in commission 
we expected. We started a legal 
action in Switzrtand hut gave 
it up.” 


Exit Spens 

Whether yua see it es a coup 
dearly depends on where you 
stand. 

Charles WBliams, chairman- 
elect of merchant bank Henry 
Anebocher beamed dehghtediy 
over Ms recruitment yesterday 
of Morgan Grenfell director, the 
Hon. Patrick Spens. 

“Patrick .will be n niritreg the 
bank and that is not a simple 
thing,” . Williams exclaimed. 
Spens, he declared, was “ a 
colourful chap, an entrepre- 
neurial sort of merchant 
banker” who had' been respon- 


sible for over 100 mergers 
during bis 12 years with Morgan 
Grenfell. 

But oyer in Great Winchester 
Street, Christopher Reevs, MG’s 
chief executive, played down the 
loss, “He is a very able per- 
son, but we have a big corpor- 
ate finance division. To lose one 
of 10 directors is not a great 
proWem.” 

Spens was the man who 
advised Ansbacher on the deal 
earlier this year under which 
the bank took over insurance 
and ship brokers. Seascape Hold- 
ings. A colleague of Spen’s at 
Morgan Grenfeti, commenting on 
his departure to “join one of 
our clients.” reckoned that 
Spens would nejoy “ being a 
rather large fish in a smaffl 
pond " at Ansbacher. 

Spens is taking with him into 
. the . fish-pond his colleague 
Roger Cert and former col- 
league Peter Phillips, who has 
been out in Singapore working 
for Private Investment Com- 
pany for Asia. 

Back at Ansbacher. Williams 
was still glowing about toe 
Spens entrepreneurial style. 

“ So. many merchant bankers are 
like lawyers and accptmtants 
these days. Patrick is a deal 
creator and a deal closer,” said j 

Williams. 1 


City lights . 

My lines the other day about the 
“Indispensable Man” recalled 
for a reader a verse that used 
to be. quoted in ' similar vein 
about the activities of tiie City. 

It is> he says, a helpful code 
for any investment analyst to 
live by: 

“In- the City 
They sell. and buy. 

And no-one ever ads them: 
. why? 

But since it contents fh»*m 
To. buy and . sen, 

God forgive them. 

They might as weU." 

Observer 


Tiltwry Plant 
- Tilbury Roadstme 
Tilbury Constetion 
Tilbury Developments 
Tibury Mechanical Services 



was across the river 


Tnburyisn'tonfya container-port ffsafsothanameofan 
expanding group of tweh/esub^ary or associated companies 
active in manyaspisetsof thecbnstruction industry throughout 


well astbesuppfyand laying of road materiafe-This work® 

earned out fora wide range of clients in both the wifaricand 

private sectors. 

Despite a 15% reduction in turnover due to tba confimifld 
recession, an advance mtracfingprofitof over £2L2 milling 
was achieved.ini 981. 

■Foran update onTffijwy send fortius latest Annual Report 
Apply to: THbunrGitJttoPubBcLnmawl. Company, Tfiburyttesm 
Busper Road Hotsfum, WestSussax RH124BB. 

• TelephbnerXorehara (0403) 69031 

, : Tilbury .Group 

; Public limited Company 

. ; Tbwardsa Cent^ 1 884-1 984- 





!' 


e 





1 


Financial Times Fridav Juiv 9 19S2 


19 


POLITICS TODAY 



it were as easy as that 


By Malcolm Rutherford 


Lombard 


St Michael and 
the pension funds 


1 .. - 
i f 


By John Render 


1IR ROY JENKINS said when 
he won the leadership of rhe 
Social Democratic Party last 
wedk that the central issue at 
the next general election would 
be unemployment. Conventional 
wisdom, even reason, suggests 
that he must be right, it is 
impossible for it to be other- 
wise. 

Yet the Nsue is perhaps more 
subtle than U sounds. The public 

debate cannot be — is nol — 
simply: “Three million unem- 
ployed is a national disgrace. 
Something mu it he done abnui 
it." IF it were as easy as that 
the Labour Party, which tends 
to think it is. would be doing 
much heller in the opinion polls. 

Somewhere along the line 
something has changed. The 3m 
mark. like the lm and 3m marks 
before n. was passed without 
quite the predicted outcry. Deal- 
ing with unemployment has 
become more of a " how " ques- 
tion. and the answers arc very 
uncertain. There may be a 
spreading awareness that what 
is going on is a kind of struc- 
tural change. We are in a tran- 
sitional period towards a 

different society. 

Whoever deals with that proh- 
lem best, and is perceived to do 
so by the public, is most likely 
to win the election. 

Here are some random 
examples of the change that is 
occurring, including the change 
in perceptions. Most of them 
draw on West Germany, which 
used to be considered a model. 

The German unemployment 
figures for June came out this 
week and — at 1.65m — show a rise 
of nearly one-third compared 
with a year ago. The number of 
vacancies continued to fall. Not 
much more than a decade ago. 
German unemployment figures 
were virtually non-existent. Tfie 
only indicator worth looking at 
was Ute number of vacancies, 
which was at times astronomic. 

The other day Herr Guenter 
Sieffens. the head of rhe 
Drcsdner Bank in London, told 
the German Chamber of Com- 
merce: “ What used tn be called 
the * English disease * — England 
has pioneered not only the 
industrial revolution hut it 
seems the beginnings of the 
poft- industrial society - — is no 
longer a British exclusive. . . 
Unemployment, high interest 
rates, static or declining manu- 
facturing industries are no 
longer the British prerogative. . . 
The difference is — it does seem 


to Tfie — ftiat the ' time of 
troubles* in Great Britain is 
beginning to lift while our 
troubles in Europe are only just 
emerging." 

Again, thi; week Herr Wolf- 
gang Roth, once a fiery, now a 
somewhat mellowed. German 
Social Democrat MP. was m 
London seeking to persuade 
Lord Weiiutock that if GEC 
were to buy the ailing German 
electrical giant. AEG. it would 
not simply acquire the tech- 
nology and liquidate the jobs. 

That itself is a turn-round of 
the first order. Ten years ago. 
it was such companies as AEG 
and Siemens which, it seemed 
with almost unlimited amounts 
of cash, were threatening 
British high technology and its 
hold on third markets. 

The last example is at home. 
It is the apparent crumbling 
away of the Aslef strike on the 
railways. It could, be coupled 
with the way t.he Government 
is playing to the nurses by offer- 
ing them more money than the 
ancillary workers in the health 
service dispute. Whichever 
way you look at it — and it 
could be simply the result of 
recession and high unemploy- 
mem — there does seem to be 
a decline in trade union power 
as we used to know it. 

The poll heal point is that 
there is not much evidence that 
any of these developments are 
greatly unpopular. On the con- 
trary.' 

None of this is an end in 
itself, or should he. The Govern- 
ment has succeeded in establish- 
ing that the oid order is 
changing. It has switched the 
ground of the argument about 
union power and state inter- 
vention. The rise of the Social 
Democrats Is an acknowledgment 
of that facr. Neither Mr Jenkins 
nor Dr David Owen want to go 
back to the 1960s or 1970s: nor 
do they think that it would be 
possible to do so. But neither 
the Tories nor the Social Demo- 
crats seem to he sure of what 
should arise in the old order’s 
place. 

The Tories have the addi- 
tional doubt of not knowing 
whether they should do any- 
thing at all to create a new 
order except to continue to try 
to bn tig down inflation. That 
was rhe main thrust of Sir 
Geoffrey Howe's Cambridge 
lecture last weekend when he 
said: **We will be the first 
government in a quarter of a 
century under which the 



The wave of the victor: Roy Jenkins, after the SDP leadership 


poll result was announced 


average inflation during our 
term of office is lower than that 
of our predecessor." 

Yet perhaps the needle on 
tiie gramophone record has 
become stuck. The problem has 
moved on. Inflation is being 
brought down in a way which 
i say i the French have never 
.succeeded in doing: the best 
that the French have ever 
achieved was to establish a 
plaleau for a few years — once 
around 7 per cent, then around 
10 per cent, now around I-I per 
cent. The British rate has 
come down dramatically. 

But something is missing: 
there is no demand. Spon- 
taneous growth in response to 
the Govern ment’s policies has 
not occurred. No doubt there 
are reasons, like high Ameri- 
can interest rare? and inter- 
national uncertainties- Yet the 


ahsence of demand has become 
a serious problem, undermining 
the Government's own aims. 

The car production figures, 
published this week, are an 
example. In the first ^ix 
months of Uie year car sales 
were down by 2 per cent on 
the first half of 1981. which was 
itself a pretty bad period. The 
new car market peaked in 
1973. 

Perhaps the post-industrial 
society requires fewer cars, 
though that hardly sounds com- 
patible with the end of the age 
of i he tram. The point is that 
the Government has been pump- 
ing money into BL. allowing 
it to buy robots and generally 
become more efficient and inter- 
nationally competitive, yet the 
company can still achieve only 
18 per cent of car sales in 
Britain. 

It is said that some British 


manufacturing industries have 
reacted to the domestic reces- 
sion by increasing exports. The 
trade figures reflect that, hut 
it was Sir Geoffrey himself who 
argued that economic recovery 
would include the recapture of 
the borne market. For whatever 
reason, ihe home market is fall- 
ing away. 

Possibly because of Its own 
internal difficulties. 'the Labour 
Part? has not caught up with 
this.' You can see that in Ques- 
tion Time at the House of 
Commons. The real economic 
crisis is no longer unemploy- 
ment per se: it is the dreadful 
output figures because they 
offer no promise that unem- 
ployment will be relieved. Mr 
Michael Foot, the Labour Party 
leader, has scarcely even 
raised the 1 matter in this con- 
text. 

The Tories have gone a bit 
quiet, too. There used to be an 
argument identified with Mr 
Geoffrey Rippun, the former 
Cabinet Minister, which might 
in shorthand be called the 
sewers argument. Where it 
lacked conviction was that 
nobody seemed to have done 
the homework to show that the 
sewers were falling to pieces. 
It sounded like an argument 
for public investment for its 
own sake. 

Yet if the state of the sewers 
really is as bad as some people 
say. they are becoming a hazard 
to public health. Public money 
should be spent on their im- 
mediate modernisation.. The 
same might be said about parts 
of the roads system. Some 
ambitious back-bencher might 
do some research on these 
matters. The case would not be 
for traditional reflation. It 
would be for essential repairs 
and improvements to the 
infrastructure. The effects on 
emplojment and on the econo- 
mic growth rate would be the 
spin-off. and would be effects 
worth having. 

Thai is where the Tories are 
stuck. They want very largely 
to dismantle the public sector, 
but they have not achieved it 
yet In the meantime, things 
decay. The rail dispute has 
been rumbling on and off for 
most of this year, but still 
nobody knows what kind of a 
transport system the Govern- 
ment wants. 

The other Conservative lacuna 
remains education. Sorry to 


harp on Sir Geoffrey’s 
Cambridge lecture: It is the best 
and perhaps the only recent 
lengthy statement of a Tory 
vision of the future. But when 
it comes to education it- is no 
more than a crude summary of 
ideas put out by the free-market 
Institute for Economic Affairs., 
probably improperly distilled 
from California. For instance: 

“ A voucher system whereby 
parents would have an even 
greater choice of schools for 
iheJr children and whereby 
standards might be raised 
through more competition is one 
possibility." 

How would such a voucher 
system work? At its purest, the 
parents would all want to send 
their children to the best 
schools, which would be 
physically impossible. It is a 
fiction to imagine there is that 
degree of choice. The Tories 
have not faced up to the fact 
that part of the old educational 
system was destroyed by the 
abolition of direct grant schools, 
and that private education is 
becoming too expensive even for 
some of their own supporters. 
The teachers say that standards 
are falling as education becomes 
something that can be bought. 

Sir Keith Joseph, in the days 
when he was given to 
philosophical speeches, used to 
argue that it was essential to 
create a common ground 
between the political parties in 
which (hey might dispute the 
details and the methods, but not 
the fundamentals. It is what 
the Austrians and the West 
Germans mean when they talk 
about the need for consent or 
social consensus. Mr Denis 
Healey sometimes talks - the 
same way. 

What lias happened in British 
politics is that the Conservatives 
and the Social Democrats (not 
forgetting their Liberal partners 
in the Alliance) are on the way 
to establishing a common 
ground. No one is quite sure 
where to go from there. That 
is why the Alliance still has 
an enormous opportunity to 
define its ideas before the 
•election, and why the Tories 
should not rest on their laurels. 
We are in uncharted territory. 

While it may be some consola- 
tion to find that the Europeans 
have caught up with our 
miseries, that is not a remedy 
for getting out Of them. The 
3m unemployment problem, 
with no prospect of alleviation, 
is still pretty acute. 


TEN YEARS ago Institutional 
shareholders were under heavy 
attack from both Whitehall and 
the Bank of England for failing 
to ginger up British industry. 
The voting power attached to 
the Institutions’ equity stake in 
the corporate sector should, so 
the argument ran, be more 
widely used to prod inefficient 
companies into a better per- 
formance since the institution's 
shareholdings were too big to 
permit them to seR put. 

No matter that few fund 

managers had much direct exe- 
cutive experience in industry 
to equip them fpr.the task. They 
had significant holdings in such 
companies as British. Leyl&nd 
and Alfred Herbert when the 
rot set in. Let them recognise, 
said the critics, that ownership 
entails responsibility mid that 
the time has come co get stuck 
in. 

Today scarcely a month goes 
by without the institutions 
taking issue with one company 
or another. The pension funds, 
whose British, equity holdings 
are probably valued at £30bn 
on so, appear particularly 
anxi ous to stir things up. The 
question is v to what end? 

Consider the nature of some 
recent causes celebres. Prob- 
ably the fiercest of the battles 
fought by the pension funds 
concerned Allied Breweries’ 
£64m bid for food group J. 
Lyons. Here the institutions, 
led by Mr Hugh Jenkins of the 
National Coal Board pension 
fund, objected td the brewer 
changing the nature of its busi- 
ness, even though it was not in 
breach of either the law or the 
Stock Exchange rule book. 

Colourful 

Less portentous, but more 
colourful was the Post Office 
pension fund’s attempt in the 
courts to prevent Associated 
Communications Corporation, 
then run by Lord Grade, from 
giving a £650,000 golden hand- 
shake and other perks to out- 
going managing, director Mr 
Jack Gill. Similar concern led 
to a house purchase deal for 
the chairman of Burton Group 
being scrapped. 

More recently the pension 
funds, the Coal Board fund 
again prominent among them, 
have expressed doubts over 
Globe Investment . Trust’s 


involvement in Mercantile 
House's takeover of the 
American brock era ge house 
Qppenheimer; they are worried 
that Globe's commitment to 
Mercantile after the deal will, 
be large In relation to its port-' 
folio. Then there has been the 
case of the West Midlands 
County Council pension fund 
which raised questions about 
BAT Industries’ cigarette sales 
in the Third World. And 
finally, last week, we have seen* 
the chief executive of the Post 
-Office pension fund criticise i 
Marks and Spencer, no less, fori 
failing to disclose that seven* 
directors had leased houses 
from the company before they 
were legally obliged to do so by 
.the 1981 Companies AcL 

What these examples of pen- 
sion fund gingering have in 
common is that they were con- 
cerned only tangentially with 
extracting a better performance 
from British Industry. Instead 
the aim was to ensure tbat 
managers played by. the rules 
and tbat companies conformed 
with the institutions’ own port- 
folio requirements. 

- The reason for this 
apparently narrow preoccupa- 
tion may simply be that more 
direct efforts to press manage- 
ment into greater efficiency 
have escaped attention: much' 
institutional activity goes on 
behind closed doors. Another 
possible explanation, however, 
is that it is much easier for 
fund managers to take manage- 
ment to tfcsk on ethical or 
narrowly financial issues than 
on the more tricky subject of 
how to run the business. 

No doubt' the stand on perks 
is entirely justified now that 
the top rate of income tax is 
down from S3 per cent to 60 
per cent But all this high 
morality comes a little oddly 
from the pension fund 
managers, who are among the 
least regulated of creatures. 
They are not exposed to the 
same legal constraints or out* 
side scrutiny as industrialists- 
Nor indeed to gingering. 

And what, apart from the! 
public relations effect, does 
their activity achieve? As 
Marks and Spencer director Mr 
Albert Frost said, in effect, last 
week: if the institutions object* 
let them sack us— a rhetorical 
challenge that admirably 
describes the limits of pension 
fond power. 


1 

i 

* 

) 


ft 




i 


BBSS 




Letters to the Editor 

True measurement of profits May we beg to differ 


Frrtir 'fir F: nance Director. 
Viewers 

Sir.— From the top of the 
Tower in Millhank 1 have a par- 
ticularly good view of the empty 
lines from Victoria and Water- 
Inn. ground to a halt, as Lex 
suggests ♦oday. by the W inhered, 
historic outlook of Aslef. Tr is 
tn avoid a similar standstill in 
industry that many of us 
strongly advocate 2 form of re- 
porting distributable profits 
which take? account of inflatinn. 
>SAP-16 may not he the answer, 
but machinery has heen c-* f sh- 
) is bed to try ti> find a practical, 
not reactionary, solution aerept- 
?hlp m hmh producers and 
;;-er= n> arena n'?. Further time 
; e required *o finalise thi® nro- 

cess. V.T.a ’ does seem incredible 


is that many of those wjrh 
neither the need, nor clients 
with rhe need, .-hould oppose 
same positive, forward think- 
ing. Indeed your le-aripr and 
the letter from Mr Ri chord 
Allen highlight the purpose of 
it all. which is rhe measure- 
ment of distributable profits. 

A more Tealistic long-term 
appreciation of distributable 
profits is essential to keep in- 
dustry on rails which do not 
lead to disaster. 

Tom Neville. 

Finance Director. Vickers. 
Chairman of the CC-A 
Monitoring Working Parr.-. 

'. Vrcrr Hon'.C. 

Mtilbe* 1 * Tm-'cr. 

Mi tlhaue. SV.'l. 


From Mr Martin Harden 

Sir, — It is with regret that we 
noie that your newspaper edi- 
torials and some of your leading 
articles are becoming more ar.d 
more wishy-washy daily. This 
was particularly noticeable dur- 
ing the Falkland? crisis when 
many of your readers must have 
wondered whose side you were 
on. Brendan Bracken must be 
turning in his grave. 

We have read rhe comment- 
about CCA in Wednesday's 
editorial and two po-ms must be 
made. Fir-Gj. v.e are only 
:oo well I'Wife »f the of 

inflation and have ourselves 
called for voluntary r.ipyi-r.-.r- 
tary ir formation *o b? prod- •red 
in the accounts of p':b*ic orr.- 
Tvnies !o *rjw the of r- 

fiption »»n - ha rv'r.n ;.--v:v' r'jr.S-. 
Secondly we h*v» never rer.*:.?c 


on any implicit bargain for the 
simple reason that we have 
never made any bargain. 

We are happy to have rite 
support of one fellow account- 
ants who have the onerous 
burden of actually haring to 
produce the meaningless figures 
required under SSAP 16 which 
Lex and others write on. At the 
time of writing this letter, 
despite the hostility of the en- 
tire accountancy establishment 
we are actually leading in the 
poll. Whatever :he final result 
of "he voting it is now clear that 
•v? have won our case and that 
S5AP IR must be withdrawn be- 
fore rhe end of the year. 

Martin Huslatn. David Keymer. 
Ncynrer Ha-Jam. 

Ci ■I'T.v Hood. 

F'.r-W ; H S X 



ONE SET OF FIGURES 
EVERY PENSION FUND 
SHOULD KNOWABOUT 


t 




Faikiands in the 
Coart of Justice 

Fr'irn Mr H. .-1 Ffiee. 

Sir. — Now that shooting and 
hrim'ains o:» 2nd around tr.e 
Falkland'* ” Islands has ceased 
is there an!' reason why the 
r J :«puro >.iould not be vet lied by 
International Court of 
Justice? 


it. 

jnprarori. parlrcr. rfta: the 

Gnvo 

m m 

v. >»f rhi? I. niicd Km:- 


vas 

nr-.-nr apprised in 

:hi* 

Tn? 

President nf Argen- 


'.V, :. 

He is no longer in 

nffi-% 



A* 

1-IP 

islands were dis- 

rT.nrnrf n - . 

Gapram Sehaidus tie 

V-'cer 

■'it. -a 

ilirg »n rhe ser/ice r>f 

:‘-,n 

N-.-rh* 

rlands. dn,?<? it mt 

spf m 

part 

1 cilia r:> appropriate 

■n;*i 

ii-n Hi 

: -rv -bnufd f i-.v hi; 


>*?ti’od nor p .-ifjd for ?1I by the 
lni-rnaii"t:.'l Court of Justice at 
Tv* Hague" 

II A. Bhce. 

7l\ rur if 1 / V'rir-llef. 
r.H l g'-H trrpi’ff. 

Exporting 

unemployment 

Fma: The Director of $:uo>c\ 

T Policy Jterer.rcii Centre 

Sir. — In a speech in Now 
York on June 2S. Mr Ere:, look 
tfie V-5. to task for " exporting 
unemployment. when com- 
menting cm the Commerce 
Department's findings on Euro- 
pean steel subsidies. Res so n- 
meit can differ about. *hc>e 
finding. 1 ; but Mr Ree?* seff- 
righUoii.- lone goes far beyond 
whet is pleasing. Thus, any 
du-intere-ted observer must 
recosnr-e that the subsidies 
afforded 10 European si eel 
inHusir:-;.. were courting I his 
reaction. Mot* -over, the U.S. is 
ai tonfi at last) attempting 
*o ?*;( 'n rtff.nrdam.e with its 

ifcwo, which iz an improvement 


over {he negotiated *' deal' " 
the European Cnmmuniiy 
generally *eem 10 prefer. 
Finally, and mo'i important, a 
country that is ? p-jctj to the 
Common Agricultural Policy, 
ike European Community's 
policy on the Muhi-Fibre 
Arrangement and a number of 
-.ccioral import restraint 
arrangements (including rhO'e 
on sieel 1 cannot legitimately 
complain about expert of un- 
orrpIo;.'mert. Just ?<k the resi- 
dent of Hong Hope or Sri 
Lanka what they feci. Policy 
makers on this .=tde of 
The .Vinnik need to 
remember that there is no 
provision in the GATT lor 
nnywhere else) »hnt the Euro- 
pean Community a mono- 
poly runt io exploit protec- 
tion ist device’s. 

Martin Wolf. 

Grnrh Square. 
r.Vci .Street. EC-/. 

Mortgages and 
subsidies 

J-1'OtC .V' .-iMfr e-v r.’i’O 

Sir. — While there 1? some 
substance in Mr Brace's letter 
f-Tune 2PL rhe weakness lies 
in his assumption irai the 
lender and the borrower are 
rhe sirae. or similar, people. As 
-eparare individual-, it i- riuh* 
That the lenders should have 
:ax levied on 1 heir mvcMnionts. 
Now let us took a: the borrowers 
as a separate group. The situa- 
tion is. as usual, confused by 
inflation. However, v.e can 
strip that mu ~k away by dealing 
with the 73lue of pounds c‘ 
;he star? of ihe period, designat- 
ing ’hem c£. A? ; unu? fir ; t that 
a tin per com taxpayer takes 
a £25.0(.wi mortgage and pays 
13 per ren 1 per annum in’oros: 
in mommy insi.Jimmc. with a 

lb per cen: inflation rate, 'hen 
the net to't over a 2u->car 
period, addin; :n the cost of 


finally paying off ire rr.e/'g.i?* 
is c£2* i.J4 ! - c£:».? ! n = 
thus the a isoc titled rsr: 0: 'he 
proper*:' hs* been ?■-."?? s.-ei :. : 
a discount of By ..om- 

pp.-ison 3 60 per cv-r* -i::p;yer 
would "nave ,r < f ri net of 

i.’f 1 1 — f.'o.g?:?. 
and thus have ;t 1 

dNcouns of c£ e, .7 ? .5 A’Jov.-.-j 
mortgage inw<; a iedaf- 
;bie mighr h? 'ie-cr:' r -ei ;*s g 
sysrem of pro;re j -:w :.l!ev:-.. 
linn, which r*jr:!y :c 7 . *: e 
underlying syster? of prouro— 
stve raxaliun. I T cur. ->■! 
seen a® a «*b*:dy :r orr. p— .»?•'.« 
not unjotin; the j- nr. -v.o 
are payng a r.uker r., • 
than -hey ww.ld sf •**■’ :!>v:a- 
tions were no* g-.-ar;'-: 1 . T--.- 

full e -tier 1 of >r.“ *.ur* 

ran be r>-r* 1..--* ■*•.■•••.■ 

ih:ti 'silhou* ■’■■.■nt ■>; 

borrowing m .:cr-: , r i£g ; ?>; - 

c£3.TlR - cSCn.fn - 
Fvnre-sed vr. g ■ ■ :‘y *: -"i® 

t.i:i *•.;■- ' ng ^ r 4 g 

the first c.t:>? and in '-o 

l:iis-r 

Andrew t* tj F**rg'j-en 

.' / . .'•ijr.Tn’i ;'f o 

f/j '’ u y.o - 7" ‘~c ■ f~c r '~r , - . 

Public sector 
wage bargaining 

'O >«; :i|._ P.-w-*' 
ivrttiiiie 0; D'recrer- 

Sir.— iVl-h ihe enun gv -sgiin 
piunged :ni*. 3 di m g ra.'f 
di.-puio. it ri'-fOTiOr *vf*g •n&rc 

vi:jl ;h:r ’he G.j'.emg^en' 

should t r.axe 2 -Tar' - r. 

rfce question cf mvr.y->oi- 

n.iy-er -if 'r^v 

nuhitu p jb! ; _• ... r/.vc* 

Lrifi M&:e ir.d-j-iry-, 

Ii is my e^’liei' nei*'.er 
*> Prior F.m.D:-v.n.'-:r: Ai;‘ -c 
sfiKi'i nor 'r.i, r , s.' , ’-.-n* 
Employment B !' -.-q : ;<* *-*■ 
notiGn *.o a-.-::; .vi'r. *.'e rr. 

wc £c«‘ a p’jv!;e -<*,-• -,r ;n 
v-nigh enifluyj-s. r.i-.-ir. 


-nompoly rinsed shop trade 
gntons. who operate ejsentta! 
«*rv:cv? — or -errices a? nec-.r 
e.-.-eg:iai a- makes no difference 
— do not face the roaltiies of 
•h-» : r brethren in ihe private 
sector. 

in the Jighr nf the experience 
of Br.ti.-h Ktiii'* nu-mess cu>- 
ion:ers. Tuveller.- and cotn- 
muier? ai the start of this week. 
:he Government must now work 
ou* 2 meihod of ensuring that 
:k,-i9 “ntp'ojvd in all pun I ic 
sector Industrie- are encouraged 
•0 baiance tiieir own a-pira'inns 
for iiupre. e<i nay ana uondi- 
■;ons cg;i>n>l the current and 
i'utiir? performance of the 
r':*:ne.«j.ea in which they are 
employed. 

The time ha* come f’.r the 
C-j*.i»,-nn:enT io consider sen-ihle 
ai’emaiive-: and to decide 

which applies best lu the kind 
of de si. -active confrontation 
wr.ivh we are 51 the moment 
igitr .-uffertna. One ruuir 
r:.i bv :o encourage no-^rike 
ugrtciuent* *.vi:h public sec-o- 
••mplnye* -. in exchange for the 
'o' :.-:!ii:eni of 2 salistactory 
sn-’hod f tin: v.'jcp level.,. 1 
Trie •■•sten’. ?':nuid lake into I 
account markel" £actor->. and 1 
cC'uid involve a form of bind- 
:r.^ am.; -.-I.- 1 on. modelled ?er- 
bap- ,r. tiie pendulum system. 
:rr v.h*ch pr arhtrrntor can 
revr'i?.m‘-r. , i only 'he chum or 
the av.-.-rd -ffered — and no: bin u 
:r beVA'cn. Such a Aj.-lrai en- 
.. rr-;,ii -ric approach :» 
pay nargs'iiiTig on the par: both 
•if ■■nf t'.npJuier and the on- 
3:0.* cd- 

The ::r.p*ir:;,n: Thing now is 

_■?: rrc dr haic going, and to 
c'.v.i pi the '.vsk of bringing 
hu-.-k inm the -ysictn of 
7*;.y n.T. - .*ining. nut only tn rhe 
rrsvttr -oemr. but amon^ P'»b- 
-.’Cl nr :.*mr»l"yoPs as wcIL 
"iVal'er 1 .oln-m:lh. 

-Ifi Pc!: Moli, S’.l'i 



It’s the telephone number o£BanJ^LivestmentMan£gement 
Limited, a wholly-owned subsidiary cfBard^Banklhia: Company. 

We speaalisein providing full investment m anagem ent services 
to institutional and ccffporate clients and we aieone ofme hading 
investment houses in Britain. Funds under management exceed £Z000 

105 


we manage on behalf of company pension funds. 

As you would expect from the size of these figures and frnm 
our Barclays Group pedigree, Barclays InvestmentManagement 
limited possesses the skills and resources needed to manage yom 
company’s pension fund-and to do it very ^ weU-whether yours is still 
a malium-sized company or a multi-national o>rpoEaricHi. 

If you would like to know mas, the man to talk to Is 


Management Limited, Juxon House, 93 Sri Paul’s Churchyard, 

London EC4M8EH. 

Ask him about the kind of performance bisfiindman^qshawe 
achieved over ±e past five years, the quality and extant of die service 
pension fund clients can expect to receive and the comprehensive: 
administrative back-up that can be includedin foe pada^ if recpikal 
We think you’ll be impressed with his answers 












20 


J r -Vy- ;-y 


Markets^ • 


UK COMPANY NEWS 


Financial ‘Times Friday July 9 1982 


Imps rises 122% despite £10m ‘transfer’ 


A 122 PER CENT increase from 
£29.7m to £65 -Sm in pre-tax 
profits Is reported by Imperial 
Group for the half-year to April 
30 1982, and this is despite de- 
ducting £10m from the tobacco 
division's surplus. However, 
group figures are still well below 
those for 1979-80. 

In the tobacco division, profits 
were £43.6m against £25.4m after 
the £10ra deduction, which was 
the profits on sales inflated by 
exceptional trade activity before 
and £fler the Budget. 

The directors say these sales 
would normally have been made 
in the second half of 1982 and 
by transferring 'the related profit 
of £10xn, a fairer view will be 
obtained of the profit pattern' 
over the two halves of 198Z. Such 
abnormal circumstances were not 
present at April 30’ 1981’ and in 
consequence, no adjustment to 
the figures for that 'half-year has 
been made. 

Mr Geoffrey Kent, the chair- 
man. says that at this stage, and 
subject to no unforeseen circum- 
stances, lie estimates that the 
group profit before fax in the 


should therefore be appreciably 
better than is 198T& £l06m 
(£i26.flm). 

Turnover of this group, which 
has interests in tobacco, paper, 
board and plastics, food, brewing 
and leisure, rose 15 per cent from 
£2.12bn to £2.44bn_ Tobacco con- 
tributed £1.23bn compared with 
fl.Ofibn. fond improved from 
£564.5 to £629m. brewing and 
leisure was higher at . £3S4.9m 
(£344.3m), the American auty 
ridiary, Howard Johnson was up 
from £1 32.7m to £177m, but 
paper, board and plastics fell 
from £32m to £30m. Inter-group 
sales were £26 m compared with 
£15.5m. - ■ 

Group trading profits 'climbed 
by 64 per cent from £53.5m to 
£87.7m. and apart from the 
£43.6m from tobacco, paper, 
board and plastics returned to 
profit with £100,090 - <£200,000 
loss): food soared 'from £1.5m to 
£16. 4m. brewing and leisure was 


tax. which rose from £4m to 
£13.3m, and after minorities of 
£100,000 (same) and extra- 
ordinary debits of £66.6m (£1.8m 
credits), . there was an 
attributable loss of £14.2m 
against a profit of £27 .4m. 

Mr Kent points out that the 
large figure for extraordinary 
items is a reflection of the cost, 
of restructuring the group, but 
he says he does not foresee the 
'need to .make substantial further 
provisions in the second half. . 

Commenting on the first hairs 
figures, he says the improvement 
was encouraging, even allowing 
for the unsatisfactory results last 
year, for it arose . despite a 
further volume decline in the 
UK tobacco and beer sectors, and 
the .continuing recession in the 
U.S. which is still badly affect- 
ing the restaurant and lodging 
industries. 

The group’s performance was 
the result of decisive manage- 


HIGHLIGHTS 


Lex today takes note of the Bank of England’s further 
reduction In bill borrowings rates, this time in the supposedly 
sensitive very short dated “Band one.” -The column then goes 
on to look at the currency markets with special reference to the 
cost of money in New York. It also examines Imperial Group 
which reports a jump in pre-tax profits from £30m to £66m for 
the six months to the end of ApriL Many problem areas remain 
within this company and its outlook is not more than fair. 


second half will be similar to the down from £1.6ra to £700.000. and 
good figure achieved in the com- interest net of Investment la- 
parable period last year. The re- come was £22.6m (£25.4m). 
suits for the year as a whole There was a big increase in 


higher at £28.1m (124.4m). but . jnenr action and the hard work 

’ of the employees in many parts 
of the group, and is further 
evidence, he says, that the near- 
term recovery programme is on 
target 

The redeployment of some of 
its existing assets is vital to this 
programme, he adds. In recent 


Howard Johnson incurred losses 
of £500,000 1 against profits of 
£2-4m. 

Share of associates’ profits was 


months it had acted to divest 
of interests which have impeded 
not only the financial per- 
formance, but also its strategic 
development notably poultry and 
eggs in the UK. and poultry in 
the U.S The former has been 
completed and negotiations for 
the latter are proceeding. 

Commenting on the tobacco 
division, he says the effect of re- 
cent Budgets, together with the 
distorted demand, as mentioned 
earlier, is expected to lead to a 
much reduced level of sales of 
tobacco products in the second 
half compared with the first six 
months. 

On the other hand, most of the 


trading activity of the Howard 
Johnson division falls in the 
summer months. 

The interim ■ dividend is un- 
changed at 2.75p and will- absorb 
£19.Bm (£19.7m). Earnings per 
share rose from Alp to 9.1p be- 
fore tax, and from 3.6p to 7.3p 
after. On a CCA basis, pre-tax 
profits rose from £17m to £38m. 

On May IS 1982 Imperial com- 
pleted the sale of the wbole of 
its UK broiler, egg; animal feed 
and meat trading businesses to 
HUlsdown Holdings for £48fim. 
The external borrowings of 
these businesses, amounting to 
£5 -3m at October 31 1981, were 
also taken over by Hillsdown. 


ISSUE NEWS 


Goal Petroleum raising £5.5] 
and plans full SE listing 


Goal Petroleum, the exploration The documents, however, do 
and production company, is rais- not provide estimated cash flow 
ins approximately £5 .5m by way for the reserves, or’ estimated 
nf a two-for-seven rights issue of dollar-sterling exchange rates. 
7.42S.572 shares at 7Sp. At the. When asked about the company's 
same time, tt has announced asset -base. Mr Boyd said: "We 


plans to move from the USM to a 
full Stock Exchange listing. 

The company has an interest 
tn the Buchan Field in the North 
Sea, where production com- 
menced last year. It has other 
interests in the North Sea. plus 
further onshore and offshore siCes 
in the UK. 

Mr David Boyd, Goal's manag- 
ing director, said’ yesterday that 
the proceeds of the rights would 
be used to finaoce future explora- 
lion activities. Specifically, the 
company is looking toward the 
up-coming Slh round of -licensing 
agreements. 

Morgan Grenfell, the merchant 
bank, owns 30.2 per cent of Goal, 
while Yule Catto, the diversified 
UK group, owns 20.1 per cent. 
Both companies have .agreed to 
take up their full ’ entitlements 
and have jointly underwritten 
the balance of the shares. 

In supporting documents 
issued yesterday by Goal was a 
new assessment of reserves for 
the Buuban Field, signed by 
Gaffney, Cline, the petroleum 
consultants. 

The assessment shows proven 
reserves of 55.5m, which is some 
5m barrels higher than a 
previous assessment by BP. The 
consultant forecast that some 
112m barrels could be the total 
amount recoverable from the 
field. 


believe it.could be bad to be too 
accurate. In the present climate. 
It is difficult to make forecasts." 

He pointed out’ that Goal is 
one of the few British oil com- 
panies with an income stream 
as well as interests both on and 
offshore the UK. The company's 
profit- and loss accounts show 
pre-tax profits of the year ended 
last December of £905.000 on 
turnover of £2£m. No forecast 
for this year is given. 

The company does not expect 
to pay a dividend this year but 
hopes to recommend a “modest" 
payment in 19S3 , provided the 
Buchan Field sustains produc- 
tion at the rates currently fore- 
cast by BP and the sterling price 
of oil does not fall “ sub- 
stantially" below current levels. 

Goal's shares are expected to 
begin trading under its full 
stock exchange listing next 
Monday. 

Stockbrokers to the issue axe 
Laing & Cruickshank. 

• comment 

The notable lack of figures in 
Goal’s rights issue document 
makes it a pretty quick read- 
The company is hoping that its 
new. improved assessment of 
Buchan's potential will swiftly 
separate shareholders from their 
money. But Buchan is a field 
full of challenges. Its reservoir 
rock has beencomparod to a pile 


of bricks, with no one quite sure 
how to tickle the oil out of the 
bricks. Goal's proved reserve 
estimate is based on what is 
expected to Sow from between 
the .bricks. Even then, BP is 
refusing to. fully comment on 
this 'flow until it completes 18 
months of testing later this year. 
'Nonetheless. Goaf rightly points 
out to Its position as one of the 
few secondary UK oil companies 
with a pre-tax profit plus interest- 
ing holdings elsewhere in the 
UK. Primary among these is its 
holding near the Balmoral field. 
Goal remains a plunge, but not 
us cold as some. In the market 
the shares fell 6p to 87p. 


USM placing for 
Bio-Isolates 


Restructuring 
at Bowring 
Martin 

Bowring Martin, the Northern 
Ireland Insurance broker, has 
been restructured. 

On July i, the two subsidiary 
companies. Bowring Martin 
(Life and Pensions) and Bawring 
Martin (Personal Insurances), 
were merged into the parent 
company, operating' respectively 
as the life and pensions depart- 
ment. and personal division. 

The Board feels that this step 
will help unify thq purpose and 
thrust of the company, enabling 
it more cost effectively to con- 
tinue to offer ’ to the insuring 
public the total range of insur- 
ance broking and -consultancy 
services. 


BY CARLA RAPPPORT 

A WELSH technique for pro- 
ducing protein from the waste of 
cbeesemaking is behind the latest 
entrant to the USM. 

Blo-lsolates. a newly-formed 
Swansea-based company, is 
coming to the Unlisted Securities 
Market via an offer for subscrip- 
tion of 3,169,200 shares- at 33p. 
The offer, representing 41J2 per 
cent of the shares, capitalises 
the company at £2. 54m. 

In the last 10 years, the direc- 
tors of the company have 
developed and patented a pro- 
cess for the isolation of pure 
protein from cheese whey, the 
stream of liquid waste which 
results from cheesemaking. 

This protein, which the com- 
pany markets as u Biopro," can 
be used as a food supplement 
which it suitable for both domes- 
tic use and in food manufac- 
turing, such as baking, cereal 
and oilier food industries. ’ 

The company will use the pro- 
ceeds of its offer to expand its 
present- output of Biopro by 
more than 30 per cent. .This 
will increase testing possibili- 
ties, allow for improvements to 
production and widen the hom- 
pany's potential customer base. 

Bio-Isolates plans to undertake 
joint ventures .with some custo- 
mers and sell its technology to 
others. 


Good progress in 
demanding circumstances 


Points from die annual statement 
by Mr Neil Clarke, ChiefExecutive, . 
for theyear to 31 March 1982. 

•Earnings for the year; before 
tax and extraordinary items, 
were £59.2 million, against 


EARNINGS PER SHARE (p) 


35.8 


minority interests were £37.6 
million, an increase of £5.0 
million on 1981. 

•A final dividend of 7.25 p 
is recommended to give a total 
dividend of 11 p per share. 

The dividend is 3.3 times covered 
by reported earnings for the year 
and LS times covered by current 
cost earnings. 

•Although the economic 
recession in the United Kingdom 
continued through the year, 
affecting the profits of some of the 
industrial companies, this was 



1978 1979 . 19SO 19S1 1982 

GEOGRAPHICAL ANALYSIS 
OF TOTAL ASSETS (£) 


stances 


Pandrol International, and by an 
increase in investment income. 

•Charter made an offer to the 
shareholders of Anderson 
Strathclyde, in which we have 
held an interest of 28.4 per cent 
for two years, to acquire the ■ 
balance of the company. 
Anderson is the major producer 
of coal cutting equipment in the 
United Kingdom. This offer has 
been referred to the Monopolies 
and Mergers Commission and 
thus for the momentit lapses. 

It is our belief that the oner 
would be positively beneficial to 


CHARTER 



the economy and should enable 
this important company to achieve 
a sttongerposition in the supply of 
coal mining equipment, partic- 
ularly in overseas markets. We have 
therefore derided to proceed with 
our case before the commission. 

•It is our intention to continue 
the policy of enlarging our active 
interests in industry and milling 
with the objective of building 
operating units which have a 
substantial share in their domestic 
market andean compete 
effectively in world markets. 

'In very demanding circumr 


very den 
ceslbelii 


eve that we made 


industrial operations and between 
our United Kingdom and overseas 
income. This, together with our 

S financial resources, should 
: Charter to withstand the 
effects of the recession. 

•We believethat the development 
programme we have planned 
carefully and are implementing 
is soundly based ana will bring its 
rewards particularly wbenstranger 
economic conditions return. 


Autfig l.g. 

*6 

Best of Africa 
2.7 


Qi^eiXojnsoHdatedp.LC 

fetiicChH&camvBsMsaiemfint ■”1 
together with the annual report and 
accounts* send this coupon, to 
TheGropanySecrmrs 
40 HolbOT Viaduct, UKxImEClP IAJ. 

Name 


Company 


Address 




The five directors of the com- 
pany will own a total of 39.8 per 
cent of the shares following the 
company owns a further 7.96 per 
cent 

London Venture Capital Mar- 
ket, which has arranged and 
underwritten the offer, has an 
option to purchase 9 per cent 
of the shares in the next year. 

Stockbrokers to the company 
are Statham Duff Stoop. 

• comment. 

BIo-Isoiafe$ arrived as a refresh- 
ing surprise yesterday in what 
was otherwise a rather dull day. 
The company comes to the USM 
under the classification of a pure 
technology .company which 
having researched its produce 
is now preparin gto move into 
the commercial world. This 
accounts for the lack of a profits 
history and forecasts. Provided 
this little Welsh concern does 
have its technique to itself, it 
has tremendous possibilities for 
growth. Other supplemental 
protein sources, like egg and 
soyabeans, have to be- laid or 
grown, while Biopro comes from 
what is essentially garbage. The 
company is already in talks with 
companies around the world like 
Nestles, Unilever, for the end- 
product and the big cheeses like 
Kraft for the input Stepping 
from the lab into the bright 
lights can be blinding— if Bio- 
Isolates gets its marketing 
strategy right it well could be 
a sabre to own. 


Ocean 

Wilsons 

slightly 

higher 


MERCANTILE CREDIT 

Mercantile Credit has acquired 
Trailerent, a leading company in 
the comme/cial rental and con- 
tract hire field. It will continue 
to operate as a separate entity 
within the Mercantile group. 


PRE-TAX PROFITS at Ocean 
Wilsons (Holdings), Investment 
bolding company, improved by 
£210,000 to £3.5281, in 1981 over 
the previous If months. The 
final dividend is raised from 
2.85p to 2.2 p for a total of 2.95p 
net against 2.6p. 

At the interim stage, when 
profits fell from £2. 32 m to 
£l.S8m, the directors said there 
was some indication that an 
improvement in cruzeiro earn- 
ings by subsidiaries was being 
maintained. But they said profit 
should not be less than in the 
previous year, subject to tile 
usual caveat concerning ex- 
change rates. 

Also at the interim stage, the 
directors said results of associ- 
ated companies continued to dis- 
appoint taken at the time 
would not become effective till 
later this year. 

Turnover for - the full year 
was £46. 79m against £39J9ra for 
the previous 11 months. UK 
tax was dawn from £329.000 to 
£178,000, and overseas tax was 
unchanged at £L65m, but there 
was a prior period’s credit of 
£20,000 (nil}. 

Stated earnings per 20p share 
improved from 5.02p to 6.46p. 

John J. Lees 
profits slip to 
£84,660 

PRE-TAX PROFITS slipped back 
at John J. Lees in the year to 
March 31, 1982, from £94,112 to 
£84,660, despite an advance in 
sales from £1.89m to £2.12 ql At 
midway the company had 
warned that there was no real 
prospect of improving profit- 
ability for the year, but was 
hopeful that results would not 
deteriorate. 

However, a final dividend of 
1.9p holds the total payout at 
2.6p net. Earnings per lOp share 
are stated at 7.56p (ll.Sp). Tax 
took £9,035 (credit £23,868). 

Lees, a confectionery manu- 
facturer, subscribed on May 12 
for 25,500 ordinary £1 shares 
(51 per cent) at par in a newly 
formed company. Heather 
Cameron Foods, which will 
make meringues and other 
bakery products. 

John Booth 
incurs losses 
of £321,000 

LOSSES OF £321,000 against 
pre-tax profits of £95.000 were 
incurred by John Booth * . Sons 
(Bolton) for the year to March 
31, 1982. At halfway, this struc- 
tural and welding engineer 
reported profits of £4,571 against 
£34.354. Turnover for the full 
year fell from £9.3m to £7.69m. 
No dividend is being paid com- 
pared with lp in the previous 
year. 

There was a tax credit of 
£243,000 (£46,000 charge), leav- 
ing an attributable loss of 
£78,000 (£27,000 profit) after 
extraordinary debits of £11,000 
(£19,000), but including minori- 
ties. 

Losses per 25p stock unit 
were ?.74p against earnings of 
5.23p. On a CCA basis, the pre- 
tax loss was £411,000 (£14,000 
profit). 


Caledonian Assd. setback 


PRE-TAX PROFITS fell back 
markedly for Caledonian 
Associated Cinemas in the year 
to March 27. 1982, from £905,000 
to £215,000. The figures reflect a 
particularly sharp downturn in 
second half profits' from £384,000 
to £20,000. Turnover for the year 
was ahead at £10,78m compared 
with £9-91m- 

At midway the company — 
whose main activities include 
the operation of cinemas and 
bingo halls, financing and invest- 
ment dealing,. . letting of 
properties and 


SPAIN 

July a 

Banco Bilbao — .■ 

Banco Central 

Banco Exterior — 
Banco Hispana ... 
Banco Ind. Cat. 
Bantfo Santander 
Banco Urguljo - 
Banco Vizcaya ... 


Dragados ... — 
Espanola Zinc . 

Fwaa 

Gal. Pnc'iadot 

Hid roll 

Iberduero 

Patrol eos 

Patroliber 

Sogafiaa 

Telefonica 
Union Elect. . 


retailing — 

Prlca 


% 

+ or — 

318 

-9 

255 

-6 

226 

-5 

291 

-4 

108 


288 

-6 

186 

-3 

32* 

-9 

233 

-2 

86 

+1 

66 

-1 

'54.5 

+0.5 

26 


55.5 

+0.5 

44 

+0.8 

70-5 

-0.5 

91 


’ 5 


83 

-0.7 

54.5 

+ 1.0 


reported a fall in profitability for, 
all divisions except .property" 
income. 

This was partly attributed to 
general trading conditions and 
the prevailing economic climate. 
However, It was felt that the 
market conditions and the tuning 
of major refurbishment works 
could mean that the interim 
decline was not indicative of 
profits to be earned for the year 
as a whole. 

A final of 7p is paid, main- 
taining the payout at 9p for the 
year. Losses per 25p share are 
stated at 6p (profits 81p). . 

Attributable losses on a CCA 
basis are put at £161,000 (profits 

£92,000). 


Courts finishes 

ahead at £4.6m 


SECOND-HALF TAXABLE pro- 
fits of £2. 95m, compared with. 
£2.73m, brought the total for the 
year to March 31, 198— at 
Courts (Furnishers) to £4,6m, 
as against £S.76m. Turnover for 
for the 12 months advanced 
from £59-25m to £6S53m, includ- 
ing UK VAT. 

With stated earnings per 25p 
share of this house furniture 
retailer hardly changed at 13.6p 
C13.7P!, the final dividend is 
being maintained at 1.95p net, 
making a same again total of 
3.7p. 

Looking to . the current year 
the directors say that turnover 
overseas is well ahead. In. the 
UK, trading conditions continue 
to he difficult, hut signs of a 
slight Improvement have become 
apparent in recent weeks. 

The increased pre-tax profits 
were achieved, although the UK 
results were adversely affected 
in the last quarter by bad 
weather conditions at the begin- 
ning qf the important January 
sale period they say. 

As predicted at the half year 
stage, property disposal profits 
were also much lower than 
during the previous 12 months. 
Deduction from profits in respect 
of deferred profit was less, 
primarily as a result of a greater 
percentage of cash business 
being transacted in the UK and 
a growing proportion of credit 
trade being carried out. through 
the company's in-house credit 
card as opposed to hire purchase. 
Deferred profit overseas however 
continued to grow, the directors 
say. 

During the year, new stores 
were added at Hitchin and 
Southampton and overseas in 
Fiji, Hang Kong, Jamaica and 
St Lucia where the company is 
trading for the first time. In 
the current year, further new 
stores are being opened in FijL 
Hong Kong, Jamaica and 
Singapore as well as in the UK. 

Trading profits were ahead at 


£7.53m (£6^9mV including the 
property . . disposal . profits of 
£292,000 (£l-26iuV- Taxable 

profits were struck after interest 
and depreciation amounting to 
£2.S4m (£2.35m>, while, tax took 
£1 39m (nil) and minority debits 
came to £285.000 (£196.000), 
leaving profits . available for 
distribution of £ 2 . 82 m (£2. 95m). 

Dividends absorb £813,000 
(£812,000) including a payout 
of £24,000 (same)' to preference 
shareholders. after which 
retained profits .emerged at 
£2.11m (£2.l4m).. . 

• comment 

Courts has been shielded from 
the cold winds blowing through 
Britain’s furnishings industry by 
its umbrella, of overseas profits, 
A strong performance in the 
Caribbean. Fiji and Australia 
provided the 26 per cent increase 
in trading profits. . The brightest 
market has been Jamaica where 
the company plans to double its 
outlets this year. The island's 
middle class is Courts' ideal 
customer. „ , , 

Some 85 per cent of furnish- 
ings are purchased on hire 
purchase which boosts the 
retailer's profits, and Court's 
slightly old fashioned image also 
appeals. The Australian result 
was an indication of the com- 
pany's strong position in the 
Queensland market but intense 
competition and the downturn in 
the economy could lead to future 
problems. However, it is the 
UK, that Courts faces its greatest 
problems. Depressed prices 
from its suppliers have enabled 
Courts to 'maintain margins, but 
tins is seen ns a temporary 
phenomenon. Its mainly 
Southern English customers pay 
increasingly with cash, reducing 
profits on transactions. Con- 
sequently. Courts' strategy is to 
build up its overseas business 
and has run up its borrowings 
lo finance the exercise. The 
shares rose lip to close at 78p 
and yield 6.9 per cent. 


DIVIDENDS ANNOUNCED 

Date Lorre- Total Total 
Current of s ponding for- last 


payment 

payment 

div. 

year 

year 

Anglo- Amer Secs int 

1.5 

Aug 25 

1.5 

— 

5.1 

Astra Industrial 

0.4t 

Sept 17 

0.75 

0.53f 

1.55 

John Booth 

nil 

— 

• 1 

nil 

— 

British Building 

0.5 

— 

1 

1 

2 

Caledonian Assoc 


— ■ 

7 

9 

9 

Courts (Furnishers) • ... 

1.95 

— 

L95 

3.7 

3.7 

Gen Funds Inv ...int 

2.5 

Sept 15 

2.5 

— 

S 

Imperial Group int - 

2.75 

Nov 2- 

2.75 

— - 

7:25 

James Latham 

4.65 

— 

4.65 

8 . 

8 

John J. Lees 

1.9 

Aug 21 

1.9 

2.6 

2.6 

Ocean Wilsons 

22 

Aug 11 

1.85 

2.95 - 

2.6f| 

Sogomana 

321 

Aug 26 

7 • 

10 

35B • 

Dividends shown pence per share net except where otherwise stated. 


* Equivalent after allowing for scrip issue, f On capital 
increased by rights “and/or acquisition issues, $ USM' Stock. 
§ Including special o;5p payment f Including special 25p payment 
11 For II months to December 31, I960. 


BREMNER p.I.c. 

Highlights from the circulated statement of the 
Chairman, Mr. J . T. Bremner, for the year ended 
31st January, 1982: 

# I regretto report that in the light of the difficulties 
experienced by the retail'trade during the current 
deep recessiontihere has been a fall in profits 
before taxation. Tor the year under review the 
profits inclusive of interest receivable amounted 
to £245,960. • 

sfc Aswe are situated ini Glasgow and our customer 
source covers West Central Scotland which iss 
heavily industrialised area we have been - 
particularly affected by-the sharp increase in 
unemployment over the period. The effect of this 
on consumer spending together with.the 
inexorable rise in local authority and public sector 
costs largely account for the disappointing results, 
sfc The recession is continuing to make trading 
conditions difficult which means that .sales remain 
sluggish while consumer confidence is undermined 
' by thecontinuing high level of unemployment. 
Government policies have a major effect 
oh these elements in the economy and 
any significant upturn in demand will be 
dependent on these. We are determined 
to be in a position to take full advantage 
.of such improvement when the economic 
climate improves. 




The Lombard 
14 Days Notice 
DeposftRat©' 
is 



Lombard North Central PLC. 
17 Bruton SL, London W1A SDH. 

For details pfione 01-409 3434 


THE THING HALL 
USM INDEX 
127.9 (+L2) 

Close of business S/7/82 
Tel: 01-638 1591 
BASE DATE 10/11/80 100 


LADBROKE INDEX 

Close 548-553 <-3) 


MsMmti»ffl^isis^inCTmpGarirawi*th^ieqTiiren^ri^orthsCcuiidlor , IlKiSfad^Dccbai^ 
It does not oanart tiiLe an invilaxnn lo any parson 10 aihscnba fcr nr 
auyseomo^ofite Compaq 


Goal Petroleum pic 

(Incorporated underthe Companies Acts 1348 to 1367; registered ioEogland -No. 1061863) 


SHARE CAPITAL 


Authorised 

£ 

2,000,000 

2,000,000 


Ordinary shares of.Sp each, fully paid 
Ordinary shares of 5p each* allotted nilpaid 


Issued 
or to be 
• issued 
£ 

1,300,000 

371,429 

1,671,429 


Application has been made to the Council of The Stock Exchange for the 
whole of the ordinary share capital, of. the Company to be admitted to the 
Official list, including the new. Ordinary shares to be issued pursuant to the 
rights issue announced on 8 th July, 1982. Iferticulars of the Company are available 
m the statistical services of -Extel Statistical Services Limited, -and copies of 


(Saturdays excepted) .up to andmcLuding 30th July, 1982from: . 

- Morgan. Grenfell & Co. Limited, 

23 Gr eat Winchester Street, London, EC2P-2AX 

Laing ACruicfcahahk, 

The Stock Exchange, London, EC2N 1HA 



V 




C. 


~\ 


/ 

») 




Financial Times Friday July 0 1982 : 

Companies and Markets 


21 


UK COMPANY NEWS 


Mixed new business for L & G 


A MIXED pattern of new life 
and pensions business on world- 
wifle operations in the first half 
?L5 C ■ v ^ ar J s reported by the 
Legal and Caneri] Group— the 
fiwond largest life -group in the 

New annual premiums overall 
? ar ?X. moVed akoadt from £4S.9m 
to £49m. but single premiums 
v?PE° vcd by one Quarter from 
£24.3m to £30, 2m. 

The group experienced good 
growth in its new life business 
where new annual premiums 
worldwide roaeby more than 20 
per cent from £l&4m to £22.3m 
and single premiums by a similar 
proportion from £15. lm to 
£18. Ira. 


Individual life and . pensions 
business was buoyant in the UK. 
where annual premiums rose 12 
per cent from £16.7m to £18.7m. 
New traditional life business- 
improved from £12-2rn to £l2.6m 
and self-employed pensions from 
£2m to £2-3m- But the growth 
came from, .anil-linked self- 
employed pensions business, 
where annual ' premiums 
expanded from £1.67m to £3^m. 

Single premium business in the 
UK showed a 20 per emit rise 
from £14. 8m to £17.Sm, although 
unit-linked life business dropped 
from £&23m to £6. 15m. Unit- 
linked self-employed pensions 
rose from JESLSm to £4.05 m. . 

Group life and -pensions 


business was somewhat dull In 
the period. The company, the 
largest pensions concern in the 
UK, saw new annual premiums 
drop nearly 20 per cent from 
£28.1m to £23.2m. although single 
premiums rose from £8 -6m to 
£9.2m. 

Insured pensions business sfiw 
a decline In annual premium 
from £21 ,8m to £18m but a steady 
rise in angle premiums from 
£4. 03m to £5.03m. The managed 
fund bad <a drop in both annual 
and single premium business. 

Hr Ron Peat, chief executive, 
expressed satisfaction widh the 
UK individual life figures in spite 

of the difficulties caused by toe 

economic climate the slow 


start at the beginning of the year 
in the mortgage market. 


The drop in group pensions, 
business reflected the lower 
level of pay settlements in the 
past year and a marked failing 
off in new entrants to schemes. 

Business in Australia produced 
good results with new annual 
premiums advancing from £2.4m 
to £43m and single premium 
business showing strong growth. 
New annual premium on life 
business doubled from £700,000 
to £1.4m and rose by 80 per cent 
from £1 An to £2.9m on pensions 
business. Single premium pen- 
sions business amounted to £2xn 
compared with £80,000. 


Astra shows sharp fall to £0.32] 


THE. DIRECTORS' hopes ex- 
pressed at midway that hill-year 
-profits of Astra Industrial Group 
would not be. far short of the 
previous period’s have not been 
realised. The taxable surplus' 
fell sharply from. £714.000 to 
£322.000 for the year to April 
30. although the second half saw 
a rise from £159.000 to £214,000. 

A final dividend of "0.4p gives 
a total of 0525p net (15p) on 
increased capital. Last time’s 
payment included a special of 
0.5p paid out of profits from the 
sale of a subsidiary. Stated earn- 
ings per lOp share are down from 
2.31p to L06p. 

The contribution from the 
engineering and metal divisions 
fen by £107,000 to £216.000, 
while -property and investment 
suffered a £363,000 setback to 
£249,000. The newly-formed 
leisure division incurred a loss 
Of £60,000. 

The directors say it was 
known that the year would incur 
the costs of continued invest- 
ment made throughout the reces- 
sion. . The return should begin 
to show through in the current . 
year. 

The engineering .results 
proved very disappointing as it 


was not possible to incorporate 
speedwell until May. - This, with 
reorganisation and integration, 
not only caused additional costs 
but disrupted output The in- 
creased turnover provided .by 
Speedwell’s order book has 
returned the division to its 
former profit levels, the direc- 
tors say. 

On the property side, addi- 
tional units have been let and 
there will be an increase in 
rental income in the current 
year. The Speedwell property 
is being redeveloped; providing 
future growt h , and phase two of 
the Aston Hippodrome site has 
been started. Lettings at Roch- 
dale are disappointing; as the 
group has bad three vacant 
units during the year. 

The leisure division’s loss 
was incurred before the start of 
activities, mainly salaries paid 
during preparation of premises. 
The directors say that, where 
activities have started, they are 
successful and there will be no 
recurrence of loss in the cur- 
rent year. 

Tax credits were down from 
£283,000 to £74.000. There was 
an extraordinary debit of £85,000, 
representing rights issue costs. 
* 


against a credit of £232,000. 

Dividends absorbed -£173.000 
(£824,000), leaving the .retained 
surplus down from £805.000 to 
'£138.000. 

CCA attributable profit came 
through at £62,000 {£819,000). 

• comment 

Astra’s failure to meet Its interim 
forecast of a similar outcome for 
the year arose from a four-month 
.legal aTwl documentation delay 
to tiie takeover of Speedwell 
Engineering, into which the 
assets of Speedwell Gear Case 
Co had been hived. The £150.000 
cash deal, which was in effect to 
acquire an order bodk in, the 
same line of business as Astra’s, 
has been completed enabling the 
division to considerably increase 
profitability. Though _ the com- 
pany has kept to its August one- 
forgone rights forecast “at least 
to maintain an equivalent total 
dividend” only tile sharp 
deterioration- in the share price 
from a 1982 high of 134p has 
kept the yield ahead of the pre- 
rights level. Not much consola- 
tion for holders who stumped up 
lOp for the new shares and 
yesterday saw the price fall Ip 
to 9p— yielding 8.7 per cent 


British Building 
profits down: 
dividend halved 


British Building and Engineer- 
ing Appliances reports a sub- 
stantial fall in pre-tax profits for 
the year to March 31 1982. from 
£204,914 to £52J73 on sales up 
slightly from £2.6m to £2.65m. 

At midway, with pre-tax profits 
down from £148,000 to £57,000 
the company said that the poor 
results were largely due to 
current economic conditions 
which continued to deprvss turn- 
over and margins. The company 
manufactures and supplies non- 
mechanical building equipment 
and plant. 


A final dividend of 05p is 
paid* making a total of lp— half 
last year’s figure. Earnings per 
25p share «ce stated at 8.6p 
(lO.lp). There was a tax credit 
for the -year of £51*241 (debit 
(£82£64). 


On a GCA basis, a pre-tax loss 
of £135.000 (profit £116,000) was 
recorded. 


Stead & Simpson expects 
progress in first half 


In his annual statement Mr 
Harry Gee. the chairman of 
Stead and Simpson, says he hopes 
the group win show increased 
profits m the first half of the 
current year, although he adds 
that it will be difficult to im- 
prove upon last year’s excep- 
tionally good second half. 

He reveals that after 10 
weeks turnover in the footwear 
division was 20 per cent ahead 
and that for motor trading was 
25 per cent higher. On the foot- 
wear side the riiairmaw says . . . 
turnover/margin . figures are 
difficult to predict, but it is un- 
likely that the turnover percen- 
tage increase wlll.be maintained 
for the whole year. . 

The motor business Is well set 
to take advantage of any improve- 
ment in the trade. Doting the 
1981*82 year expenditure on the 
acquisition of new shops and 
modernisation of existing 
branches cost the group; £L88m. 
This had to be funded out of 
current resources and adversely 
nffected profits for the year. Mr 
Gee says it is expected that the 
new branches, will contribute a 
reasonable return in the current 
year. 

As. reported on July 2, an im- 
provement in the -second half 
enabled the group to increase its 
pre-tax profits from £2 ,13m to 
£2.2m for the 12 months to March 


31 1982. At year end share- 
holders’ funds totalled £5B.83m 
(£27.45m) and fixed assets came 
to 155.24m (£23.19m). The 

accounts show that John 
Blundell, a wholly owned sub- 
sidiary of the UDS Group, holds 
28.92 per cent of the ordinary 
shares. 

Meeting in Leicester, on 
August 3. at noon. 


Sogomana pays 
special 25p 
distribution 


Pre-tax - profits of Sogomana 
Group, natural rubber, oil palms 
and cocoa producer, rose from 
£705,392 to £728,417 for 1981. 
induding other : income . of 
£278.796, against £287773. 

. There is an unchanged final 
dividend of 7p and "a special 
distribution of 25p, which boosts 
the total payout from 10p to 35p. 
Earnings per lOp share are 
shown as Z29p on net basis and 


as 13.84p (13.63p) on a nil- 
itio 


distribution basis. 

The ACT. of £333.800 payable 
on the special dividend is con- 
sidered irrecoverable and has 
been included in the tax charge 
of £657^)07 (£280.743). 


BOARD MEETINGS 

Tha following compimn fcava notifiad Allied Taxfia Julv 23 

dine ot twanJ muting* to The Stock Barefcfr* Bank Aug S 

Exchange. Such maatHtga ara usually Gaaft£nar -July 21 

haW tor tha puroosa o» ebnaiOetmg TiitMia fovaamrent Trust July la 

riividahdi. Official mdtecnon* ara not Hnata— 

avaffabta' n to whaihar* tha rfn/Mimds Alliad Colloids July 20 

ara nvtar'nns or finals and tha sub- All nan London Properties July 13 

divisions shown below ara hated Chnatia-Tylar July 15 

mainly on last yaw's ti inerrable. Daajan Ju y i* 

TODAV Haslemara Esutas July 15 

Interi ms - Sotfreby Parka Barnet. Howard and Wyndham -JuJy J* 

Final*— B rah am MBfor. Oand Scott Initial . ..... Juhr If 

StonehKI. Investment Company ... . . July to 

FUTURE DATES Svmonda Engines ring July 15 

Interi ms- ■ Tsx Abrasives July 15 


J. Latham finishes in 
the red but holds payout 


DESPITE A £35,000 advance 
midway to £161.000 and expecta- 
tions of some improvement in 
the full year results James 
Latham , timber merchant, swung 
from profit to loss for the 12 
months to March 31 19S2. 

At the pre-tax level the loss 
emerged at £211,000, compared 
with a profit of £229,000, on turn- 
over down from £24,5m to 
£23_16zn. 

Mr Michael Latham. The chair- 
man, explains tint frilling com- 
modity prices and seasonal 
factors cancelled out the benefits 
of achieved overhead savings. 
He adds that there was also an 
unwelcome increase in interest 
rates last autumn. 

Nonetheless, a £1.31m tax 
credit (£105.000 charge) this 
time left the group with an after 
tax surplus of £l.lm (£124,000) 
and the dividend is being main- 
tained at 8p net by a same-again 
final of 4.65p— earnings per £1 
tii are jumped sharply from LSp 
to 40.4p. 

Trading profits came through 
ahead at £987.000 (£920.000) but 
from this depreciation took 
£247,000 (£249,000) and interest 
£779,000 (£457,000). There was 
also a provision of £178,000 for 
unrealised stock losses and a 
£105,000 loss on activity sow 
terminated and general redun- 
dancy payments. Land disposals 
added £111,000 (£15,000). 

Mr Latham says that after two 
years and eight months of reces- 
sion it is difficult to forecast the 
moment of upturn. Meanwhile, 
he reveals that the group’s 


•In order to release and redeploy 
its assets. 

As an example he points to the 
creation of strategically located 
timber centres together with a 
modest programme of industrial 
investment linked to the group's 
trade. The chairman says this 
will enable the group to operate 
efficiently and profitably when 
the country emerges f rom the 
recession. 


Improvement 
by Equity 
Consort 


Revenue of Equity Consort 
Investment Trust Improved 
from £425465 to £457.090. after 
tax up from £202,037 to £216.766 
for the year to April 30 1982. 

Gross earnings per £1 ordinary 
share rose from 13JJ5p to 14.06p, 
while those on the 50p deferred 
shares pushed ahead from 
14-Tlp to 16-llp. 

The dividend on the ordinary 
shares is raised from 9275p to 
9.5375p, with a final payment of 
6-3S75p net and that on the 
deferred is being lifted from 
10.15p to 10.675p. 


SKETCHLEY 


OVER 88 per cent of the 3.38m 
ordinary shares in Sketchley 
offered by way of rights have 
been taken up. Those shares not 
taken up have been sold and, an 
excess over the issue price of 


36.0166p net will be distributed 
activities have been reassessed to original allottees. 


EUROPEAN OPTIONS EXCHANGE 


Serlu. 


Aug. i Nov. I 
Vol. : LMt | VoL j Uxt ; 


Feb. 

Vol. ; Last 


Stock 


GOLD 0 

*MOV 

30 

l 23 

— 

i — ■ 

20 

40 

• «313.75 

GOLD 0 

S323 

17 

1 9 

3 

! • 32 ; 

20 

52 

' »■ 

GOLD C 

*300: 

20 

a 

4 

: ls -*2 i 

7 

22 

■■ 

GOLD C 

*375i 

■ — 

! — 

1 

; 3 ! 

— 

— * 

I* 

GOLD C 

*400 

— . 

1 - 

1 


— 

— 

t n 

GOLD P 

*300: 

— 

1 ^ 

IB 

; « i 

1 

1& 

if 

GOLD P 

*323' 

2 

I 20 

— 


— 

— 

ia 

GOLD P 

*3751 

1 

i 64 

— 

■ . 


‘ 

i b* 

ias 4 NL 81 87 91 








c 

f.iio: 

10 

I 1.30 


1 j 

10 

2.70 

'F. 110.30 

c 

r,ii7.a« 



200 

i ojo ! 

— 

— 

t _ *. 

p 

F.liol 

13 

1 0.60 

— 

i — i 

— 

— 

1 ?• 

p 

p 

M i!H3 

4 


10 

B 

| 2.90 1 
I 9*0 [ 




I 11 

1 It 


10*< NL B0 86-85 
C F. 10® .301 
10 NLB28U9 

p f.ioo: 


ABM C 
ABN P 
AKZOC 
AKZO P 
AKZO P 
AMRO C 
AMMO P 
AMRO P 
HEIN C 
HEW P 
HEW P 
HOOG C 
HOOT C 
IBM C 
KIM C 
XLM C 
KLM C 
HUM C 
KLM P 

KLM P 
KLM p 
NEDL C. 
NCOL C 

NEW. P 
NBDL P 
HATH O 
HATH P 
PHIL C 
PHtt. O 
PHIL P 
PHIL P 
HO C 
WO O 

no o 

JTO p 
NO p 
UNIL O 
PHIL P 


fjbo; 

F.EBO 

F.B5; 

FttM). 

p.as 

F.BO 

F.4B 

F.fiO 

F.Sfi 

F.S3 

p.eo 

F.tfl 

F.17JW 

sea 

F.M 

F.IOO 

f.uo 

F.130 

F.8V 

F.W 

P.100 

p.no 

/.iso; 

P.llOf 

F.lBO 

r.its: 

r.us; 

FS2.BO; 

ss 

. r.xoO! 
r. 

p.eo. 

F.2BO! 

F.140- 


— 

J - I 

— i 

■ 

20 

1 S l 

- I 


July 

Oct 


1 

1 loo ; 

7 _■ 

T 

9 

! 3 ' 

11 

10 


! - 1 

60 . 

1 

5 

: o.io 

— I 

— 

30 

r.50 

» 

— 



5 ' 

1,20 

^ . 

« i 

11 . 

1.60 



_ 

3 . 

4 

11 

; 3.50 

— 1 

— 

30 

' 0.10 

w 

1J0 

10 

3 • 

— 

— 

10 

; o.«J 

• — i 

— 



15 ■. 

oao 


10 | IJtn 1F100.1Q 


— 'I - r — IF.87.40 


Jan. 




- ran 

- Jf^5!6Q 


3 1.50 'F.4&9Q 

S - 2.60 , „ 


- FA7 


2 

2 

16 

6 

3 

5 


1*4 

6 

3.20 

1<WB 

1 

2.50 


- 1 - P.15.30 

60 1.30 „ 

5 . 23i »61.i 

- F.87.70 


4 4.20BF.8& 


65 

8 

10 


5 

12 • 
2,90 A 


S | O.BO . 

22 j : 

23 I O.SO | 
55 ! 0.50 | 


3 1 6.40 
21 ; 2.50 i 
3 3.40 [ 


« I O- 10 

6 ! 3J0 


10 j 3 ; 

B6 { 1.60 j 
46 , 0.5O | 


- 1 - F.111.50 

2 I 4.10 , „ 

2 ; 4.50 | « 

12 ; 4 lF.life.10 

3 ! 3.50 ! „ 

10 J 2 >fJHL60 

5 1 


16 j 12B 


116 ; 0.20 


48 


4B 


six ; zjo ■ 

251 j 0.40 
13 ! 1.70 ' 
8 . 7JOB 


2 j lOAF.B^ 

16 1.70 | l 

12 2 JO 1 

8 - 8 .. 

2 ! 4.70 F. 144.50 

4 ■ 420 ■ :, 


BOU C MO 

TOTAL VOLUME IN 
A*s Asfceil 


AUfl. HoV - 

8 1 »«!-■- 

CONTRACT* 2468 

6=Call 


Feb. 

- ;S19ri 


PsPut 


This advertisement is issued in con^Bancewith die 
regulations of the Council of The StockExchange. 
It is not an imitation to the public to subscribe for or 
purchase any of die Loan Stock. 


the croimite group plc 

llr^orTarated in England under Ihe Companies Aot 329-No. 2590Q1 


Rights issue of £1449,722 14 per cent 
Convertible Unsecured Loan Stock 1592 at pan 


Application has-been made to the Council of The Stock 
Exchange for the .£1,049.722 14 per cent. Convertible 
Unsecured Loan Stock 1992 of The Cronite Group PLC to 
be admitted to the Official List. Particulars relating to The 
Cronite Group. PLC are contained in the cards circulated 
by Extel Statistical Services Limi ted and areavaflabteduring 
usual business hours on weekdays (Saturdays excepted) up 
to and including 29th July, 1982 
£rom> 


Monfagu,Loebl, Stanley & Co, 
31 Sun Street, 

London EC2M2QP 

and StnrlcFTflwng B 


M. J. H. Nightingale & Co. Limited 


27/28 Lovat Lane London EC3R 8EB 


Telephone 01-621 1212 


13S1-82 
High Lrw 

120 120 
121 100 


P/E 


75 

51 


62 

33 


228 187 

no ion 


265 2«0 
104 60 


133 

83 

78 

102 


97 


46 

S3 


110 100 
113 9* 


130 
334 
73 51 

222 154 


s 


18*2 10 
90 68 

44 M 

itn 73 
263 212 


Company 

Ass. But. Ind. Ord. ... 
Am. Brit. lad. CUIS... 

Alrsgning Group 

Anniugs & Rhodes 

Bardon Hill 

CCL Upc Conv. Praf... 

Ciadieo Group 

DafeOMh Services 

Frank HorsaJI 

Frederick Parker 

George Blair 

Ind. Precision Castings 

Isis Conv. Prof. 

Jackson Group 

Jamas Burrough — .. 

Rohan Janie ms 

Scrutions "A” . 

Tardsy & Carlisle 

Twwloek Otd 

Twintock ISpo ULS ... 
Unilock Holdinna - • • 
WaBer Alexander 

W. S. VoatBs 

Pncoi now available 


Grofls Yield 

Pri eff Change ditf.(s) % 

Fully 
Actual taxed 

120 


B.4 

5.3 

10.9 

134 

151 

— 

10.0 

7.6 


rnm 

71 



6 1 

3.6 

8.1 

13 3 

43 



4J 

10.0 

3.6 

8.1 

228 

— 

11.4 

5.0 

8A 

12.1 

110 

•mm 

15.7 

14.3 

— 

_ 

265 


2B.4. 

10.0 

10.7 

12.0 

62 

+ 2 

6.0 

9.7 

3.1 

8.0 

133 

+ 1 

0.4 

4.S 

12X1 

245 

74 

— 

6.4 

85 

3.S 

7.2 

53 






SB 

— 

7,3 

7.4 

7.1 

10.7 

110 

+ 1 

15.7 

14.3 

— 

— 

105 

— 

7.5 

7.1 

3.2 

6.7 

123 

— 

96 

7.3 

S.O 

10.0 

230 

— 

31.3 

13.6 

32 

8.1 

79 

+ 1 

5.7 

7.2 

103 

125 

155 


114 

7 4 

7.0 

11.9 

IS 1 * 

— 

_ 


12.1 

17.6 

7B 

— 

150 

19 0 



25 

mm 

3.0 

120' 

4.5 

7.6 

Ed 


64 

76 

55 

95 

255 

+ 1 

145 

62 

6.2 

12.3 


on Presul phi 43146. 


600 Group 
waits for 
UK upturn 


SIR JACK WELLINGS.- chair- 
man of the 600 Group, says In 
his annual statement' that the 
company is still awaiting some 
firm evidence that the UK is pull- 
ing oat of the recession. 


He expects the group to main- 
tain a substantial volume of over- 
seas business but, without a 
sound base of home sales, it can- 
not reach an acceptable level of 
profits. 


The directors are optimistic 
for the future and. as soon as 
there is an improvement in the 
UK economic climate, “we are 
confident of a return te profits 
which more truly reflect the 
potential of the group.” 


Pre-tax profits for the year to 
March 31 fell from £4.76m to 
£4. 46m, with a sharply reduced 
contribution from the machine 
fools side, as reported on June 
11. The dividend total is held 
at 5.25p with an unchanged final 
of 2.9 lp. 


Shareholders' funds totalled 
£6S.02m (£69-28m) at the year- 
end. Uet current assets were 
down from £54 -34m to £47.76m, 
including cash of £3.22m 
(£5. 17m) and short-term borrow- 
ings of £10.94m (£10. 27m). 


. There was a net inflow of funds 
of £795,000. in. the year, compared 
with an outflow of £6. 03m last 
time. 


Meeting: Grosven or House, W, 
July 28, 1L30 am. 


Nefl & Spencer losses reduced 


FIRST HALF losses at Neil & 
Spencer Holdings were reduced 
from last lime's £916.000 to 
£606,000 at the pre-tax level and 
tiie group is expecting to make 
further progress in the second 
six months through benefits 
from the International Exhibi- 
tion of Laundry and Dry 
Cleaning which took place in 
early June. 

The interim deficit covering 
the six months to May 31, was 
after taking account of higher 
interest charges of £553,000, 
against £465,000 and exceptional 
costs of £18.000 (£79.000). 


There was a tax credit of 
£8,000 (nil). Extraordinary 
debits last time took £11.000. 

The loss after tax and extra- 
ordinary items came through at 
£598,000, compared with 
£906,000, equal to a loss per lOp 
share of 5Bp (9p). Turnover 
rose from 0.1.71m to £13.75m. 

The directors say the reduced 
lasses reflect some benefit of 
the reorganisation -which took 
place during 1981. 

As in previous years, the first 
quarter produced a poor result 
hut the second quarter saw the 
group’s laundry and dry cleaning 


equipment activities operate 
profitably — the group also 
manufacturers air controlled 
systems and specialist electrical 
equipment. 

The rights issue and the sale 
of two small subsidiaries during 
the first half raised nearly £lm 
and toe directors say the group 
is operating well within its bank 
facilities. 

However, they consider pay- 
ment of an interim dividend, 
would be inappropriate. 

Pre-tax losses for the 19J50/81 
year totalled £L.45m from sales 
of £25, 62m. 


F. Horsell sharply ahead 


SHARPLY HIGHER profits were 
returned by tbe Frank Horsell 
Group for tbe year to March 31 


1982, the pre-tax figure emerging 


at £L.47m. compared 
£358,000 previoody. 

Turnover of the group, a manu- 
facturer of lithographic printing 
products, was also well ahead, 
rising from £8£3m to £11.4Sm, 
with export and home sales 
showing improvements of 86 per 
cent and 26 per cent respectively. 

Horsell has made a good start 
to the cur re n t year with both 
sales and volume results ahead 
of budget and “ substantially 


higher than anything achieved 
in comparable periods, of pre- 


It is pointed out that invest- 
ment in sophisticated equipment 
at Horsell Graphic Industries, to 
produce high quality printing 
Plates, has paid off and that the 
group has continued to increase 
its market share world-wide, 
despite depressed market condi- 
tions. 

Over 70 per cept of its output 
is exported and work has begun 
on the installation of a further 
continuous process manufactur- 
ing line to boost production of 
printing plates and to improve 
profitability and competitiveness. 

Tbe company's shares are 
traded in tbe market made by 
M. J. H. Nightingale and Co. 


vious years. 

The directors, confident that 
this sales expansion and volume 
growth will be maintained, are 
stepping up the dividend for 
1981-82 by lp to 5.5p per share by 
final payment of 4p — earnings 
per 20p share were up from ll.lp 
to 23.Sp-' 


UKO INTERNATIONAL (optiulmte 
and catering equipment greool— 
Results for year ended March 31. 1982. 
reported June 12. Fixed assets {831m 
(£1 0.04m) . Net current assets £18 36m 
(CIS. 12m). Shareholders' funds 
£17.15m (£17.89oi). Lewie C10.7m 
(£11 .01m). ■ Bank overdrafts Cl . 78 m 
<CT33m). Meeting. Winchester House, 
EC, July 30, noon. 


Danae profits 
down slightly 
at year end 


Pre-tax profits for Danae 
Investment Trust slipped slightly 
from £572.201 to £556465 in the 
year to May 31 1982, on gross 
revenue of £708,000, up from 
£665.966. Dealing subsidiaries 
contributed £1,957 (£12416). 


As anticipated midway, a 
second interim of 2.4p is paid 
in lieu of a final, malting 4p for 
the year — unchanged from 1981. 
Minorities totalled £116J534 
(£119,501) and tax took £173,424 
(£172.411). 

Effective from February 16 
1982. Danae’s capital was reduced 
by writing down capital shares 
from lOp to 3p and income 
shares from 50p to 25p. At year 
end, earnings per income share 
are put at 3£p and net asset 
value per income share at 35-Sp 
(42.88p). 



Imperial Group 


Interim Report 1982 


Mr. Geoffrey C. Kent, Chairman, 
comments as follows — 

“ The improvement over the first half erf 1981 
was encouraging, even allowing for the unsatis- 
factory results last year, for it arose despite a 
further volume decline in the UJC tobacco and beer 
sectors and the continuing recession in the U.S.A. 
which is still badly affecting the restaurant and 
lodging industries. Our performance was the result 
of decisive management action and the hard work 
of employees in many parts of the Group, and is 
further evidence, that the near-term recovery 
programme is on target 

“The redeployment of some of our existing 
assets is vital to this programme. In recent months 
we have acted to divest ourselves of interests which 
have impeded not only our financial performance 
but also our strategic development, notably poultry 
and eggs in the U.K. and poultry in the U.S.A. The 
former has been completed and negotiations for the 
latter are proceeding. 

“ The large figure for extraordinary items is a 
reflection of the cost of restructuring the Group, 


but we do not foresee the need to make substantial 
further provisions in the second half-year. 

“ The effect of recent Budgets, together with 
the distortion of demand referred to in Note 3 
below, is expected to lead to a much reduced level 
of sales of tobacco products in the second half of 
the year compared with the first six months. On 
the other hand, most erf the trading activity of the 
Howard Johnson Division falls within the summer 
months. At this stage, and subject to no unforeseen 
circumstances, we estimate that Group profit before 
taxation in the second half will be similar to the 
good figure achieved in the comparable period last 
year. The results for the year as a whole should 
therefore be appreciably better than in 1981. 

“The Directors have decided to declare an 
interim dividend at the same rate as that of last 
year, namely 2.75p per share. This will absorb 
£19.8m (1981, £19.7m). Warrants will be dated 
1st November 1982 and will be posted to those 
shareholders .who are registered in the books of 
the Company at the close of business on 4th October, 
1982.” 


£ million * 

External Sales 
Tobacco 

• Paper, Board and Plastics 
Food 

Brewing and Leisure 
Howard Johnson 
Inter-Gronp Sales 

Group Results (unaudited) 

. Half-Year to 30th April % Change on 

1982 1981 1981 

1.232.1 1,060.2 

30.1 32.0 

629.0 564.5 

394.9 344.3 

177.0 132.7 

(26.0) (15.5) 

2.437.1 2,118.2 + 15% 

1 Trading Surplus 

Tobacco (see Notes 2 and 3) 

43.6 

25.4 


Paper, Board and Plastics 

0.1 

m) 


Food 

16.4 

1.5 


•Brewing and Leisure 

28.1 

24.4 


Howard Johnson 

(0.5) 

2.4 



87.7 

■ 53.5 

+ 64% 

Share of Associates’ Profits 

0.7 

1.6 

Interest net of investment income 

(22.6) 

(25.4) 


Profit before taxation 

65.8 

29.7 

+ 122% 

Taxation 

(13.3) 

(4.0) 

Profit after taxation 

52.5 

25.7 

+ 104% 

Minority interests 

(0-1) 

(0.1) 

p 

52.4 

25.6 


Extraordinary items 

(66.6) 

1.8 


(Deficit) /Profit attributable to shareholders 

(14.2) 

27.4 


1 Earnings per share 1 

— before taxation , 

9.1p 

4.1p 

+122% 

— after taxation 

7^p 

3.6p 

+ 103% 


Notes: 

1. Comparative figures have been restated to reflect the 

following: — 

(a) the change in policy on goodwill adopted in the 
1881 Report and Accounts; 
fb) the transfer of businesses between Divisions: 

(c) tbe effective tax rate applicable to the whole of 
1981. 

2. The Tobacco Division adopted the straight line basis 
for depreciating plant and machinery from 1st November 
1981, the basis used throughout the rest of the Group. 
This basis reduced depredation charges in the half-year 
by £2.3ra. 

Sale of U.K. poultry, egg 
On ISth May 1982 Imperial Group completed 
the sale of the whole of its UIC broiler, egg. animal 
feed and meat trading businesses to Hdlsdown 
Holdings Limited (“ Hifisdown **) for £48.5m. The 
external borrowings of these businesses, amounting 
to £5.3m at 31st October 1981 were also taken over 
byHillsdown. 

During the year ended 31st October .1981 these 
interests which included Allied Pam Foods Ltd, 
Buxted Poultry Ltd, J. B. Eastwood Ltd. and 
Eastwood Thompson Ltd, had a turnover of £382m 
and net losses before taxation and inter-Group 
interest of £8m. Net assets at the date of sale were 
£101m. 


3. 


The Tobacco surplus of £43.6m is stated after deducting 
flOzn, being the profits on sales inflated by exceptional 
trade activity before and after the Chancellor’s Budget 
These sales would normally have been made in the 
second half of 1982 and by transferring the related 
profit of £10m a fairer view will be obtained of the 
profit pattern over the two halves of 1982. Such abnormal 
circumstances were not present at 30th April 1681 and 
in consequence no adjustment to the figures for that 
half-year bas been made. 

Tbe' current cost’ profit before taxation was f3Sra (1951: 
£17m) after allowing for a gearing adjustment of £10m 
(1981: £6m). 


and meat trading interests 

These businesses, which had been recently 
rationalised, have greater potential in a group with 
"a bigger commitment to commodity foods than 
Imperial plans to have in future. Imperial is now 
in a better position to concentrate on developing 
the .considerable brand strengths of its other food 
businesses. 


The consideration is payable in cash, film has 
been received and/ a further £5m is due on 18th 
August 1982. The balance is payable by equal 
half-yearly instalments over five years ending in 
April 1987. Interest on the deferred payments will 
be at a variable rate dependent on the profitability 
of Buxted Poultry Ltd and its related milling 
activities. 


Imperial Group plc. Imperial House, 1 Grosvenor Place, London, SW1X 7HB • 


t 








r- - ».-p ' arm 


Financial Times.Friday July 9.19S2; 


Compaaies and Markets 


UK COMPANY NEWS 


MINING NEWS 


First-half diamond sales 
may herald recovery 


Ariel International 
jumps to £5.7m 


BIDS AND DEALS 


Lookers extends bid for Braid 


By GEORGE MI LUNG -STANLEY 

THE SHAKES of De Beers Con- 
solidated Mines of South Africa 
leapt ahead in London yesterday, 
with thp release of lie first-half 
figures for world diamond sales 
from De Beers* Central Selling 
Organisation. 

Aggressive demand bath in 
London . and Johannesburg 
boosted tiie shares by 20p, and 
they closed at the day's best 
level of 204p. 

The CSO’s sales figure for the 
first six months of 1982 was 
somewhat above midway 
between the best and worst esti- 
mates at R636m t£320m). The 
performance was good without 
being spectacular, representing 
the first increase between two 
six-month periods since the first 
half of 19S0. 

There are grounds for suspect- 
ing that the share market was 
looking perhaps' a little too hard 
for some good news from De 
Beers, after the recent announce- 
ments of falling profirs and the 
halved final dividend for 19S1. 

The latest figure is 27 per cent 
above that for the second half 
of last year.. but still 15 per cent * 
down on the first half of 1981, 
and well down on the peak of 
R1.27hn recorded for the first 
period of 1980. 

Tn dollar terms, the curoncy 
of actual sales, the figure for 
the first six month? of this year 
was S624m. which is 17 pc- cent 
up on the second half of last 


year but still 34 per cent below 
the first six months. 

De Beers said the disparity 
between the rand and dollar 
figures is a consequence of the 
fact that figures are translated 
from dollars into rands at the 
exchange rate prevailing at the 
time of each sale. The rand has 
continued to depreciate against 
the dollar throughout the period. 

It is still too soon to say 
whether the latest ' result 
indicates the start of a longer- 
term upturn in demand, partly 
because of the uncertainty 
surrounding the future course 
nf interest rates in the U.S., the 


most important market for 
diamonds in the world. 

Six months to Year's 
Juno Dec Totel 
Rm Rm Rm 

1982 

635.5 

— 


1981 

747.5 

501.9 

1,249.4 

1980 

1.267.2 

874.4 

2.141.6 

1979 

1.085.4 

1.106.2 

2.191.6 

1978 

1.063.5 

1,155.4 

2.218.9 

1977 

943.4 

859.3 

1.802.7 

1976 


670 0 

1.351.9 

1975 

365.1 

438.4 

793.5 

1974 

525.5 

313.6 

849.1 

1973 

478.7 

441.9 

920 6 

1972 

323 4 

332.1 

655.5 

1971 

220.1 

226.3 

446.4 

1970 

200.7 

177.7 

378.4 

1969 

260.1 

234.5 

-494.6 


Mr Harry Oppcnheimer, De 
Beers' chairman, predicted that 
the sales figure for the first half 
of this year would show an 
increase, and first-half rises have 
often been followed by declines 
in the remainder of the year. 


as the accompanying table shows. 

This is explained by the fact 
that what are traditionally the 
two weakest ‘‘sights*' (diamond 
sales) fall into the second half 
of the year. These .are in July, 
at the start of the holiday season, 
and in December, when dealers 
normally like to wait and see 
what sort of performance retail 
sales of jewellery have put up 
over the Christmas period. 

A better judgment will have 
to await the Ausist sight, and 21 
will also be interesting to see 
how the CSO figure translates 
into first half profits of De 
Beers, due next month. 

The latest figure does at least 
imply that some of the measures 
De Beers has taken to stabilise - 
the world market for diamonds 
are beginning tn bear fruit. 

These have included building 
up the CSO stockpile to the un- 
precedented level of R14bn at 
the end of 19SL and this is stiij 
growing. However, De Beers said 
that the rate of growth has now 
slowed, and the stock figure is 
unlikely to reach R2bn by the 
end of this year, as some com- 
mentators had predicted. 

The other main step De Beers 
has Taken has been to change 
the make-up of its output of 
stones towards the smaller, 
cheaper gems, which have proved 
more saleable In the recent diffi- 
cult times. 


PRE-TAX PROFITS of Ariel 
International, the continental 
European property investment 
company in which Wimpey holds 
a SO per cent stake, jumped from 
£500,000 to £5.7m.ln the year to 
December 31 1981. 

The improvement reflects the 
benefit of two major property 
disposals in the year, both, in 
West Germany. In Essen the 
company sold its shopping centre, 
to a German pension fund while 

a 69,000 so ft office block, in 
Frankfurt was also sold. 

■ The company has a sizeable 
development programme in hand 
in spite of the disposals. Develop- 
ment in progress, excluding land 
purchased for future develop- 


ment, totalled £4fim at the end 
of £981. 

The directors estimate that 
the developments when com- 
pleted will have a value of not 
less than JEIOOm.. 

The company is looking for 
further development opportuni- 
ties, particularly in Frankfurt 
where it has a strong base. It 
is also seeking opportunities la 
carry out joint developments 
with various institutions. 

However, the company, which 
traditionally regards itself as a 
long-term investor, has not ruled 
out the possibility of further 
disposals. The cash raised would 
allow the company greater 
finan cial flexibility to carry out 
new schemes. 


Lookers, the Manchester 
vehicle distributor, yesterday 
extended its £3.5Sra bid for 
Braid Group until July 28. 

This came only 24 hours after 
Lookers had taken the unusual 
step of advising shareholders 
who had accepted its offer to sell 
their shares In the open market. 

The reason for the extension 
is that Lookers acquired a fur- 
ther 120,000 shares over the past 
two days, taking its holding to 
1.8m shares or 30 per cent of 


Braid's Equity. A bidder who 
acquires 30 per cent of a com- 
pany must keep Its offer open 
for a further 14 days under the 
rules of the City’s merger code. 

■While technical considerations 
have prompted the extension of 
the offer Lookers is continuing- 
io advise shareholders who nave 
accepted the terms to withdraw 
their ■ acceptances and sell, its 
advisers, Lloyds Bank Inter- 
national, said. 


This would -allow them to 
receive 58p per share— the level 
of the revised offer. If the bid 
fails to gain 50 tier cent aecep. 
lances it will lapse and the share 
price would then fall, Lloyds 
said. 

Holders of 466,092 shares, 
representing 7.8 per- cent of 
Braid's equity, have accepted the 
offer. Together, with shares U 
owns. Lookers has the support 
of 37.8 per cent of the equity. 


Global amplifies bid objectives 


Winding up orders 
against 45 companies 


RGC still facing tough times 


COMPULSORY WINDING up 
orders against 45 companies were 
made by Mr Justice Nourse in 
the High Court. They were: 

Conveyancing and Legal Title, 
Michael Groom. Mongoose, 
Kegvale, Insurance Appoint- 
ments Office and Gemscoop. 

Autobann-Freight, Dnunstone, 
G. & D. Jewellers, Environ- 
mental Emission Control and 
Lifespan. 

Acorn Training, The Eccles 
Repair Service Depot, Texlar, 
South-Central Coaches (Dorches- 
ter) 'and Norman Clothier Hold- 
ings. 

Fitzroy Caterers, JuoabeZl, 
Jura crest. T. & A. Overseas, 
Gerald Zisman Associates and 


List's Bakeries (Hlflingdon). _ 

Cheshire Industrial and Civil 
Engineering Services. Walkers 
Restaurant, Shelfgold, Innovators 
Production Equipment, Wool- 
crest and Price crest. 

Milecastle, Quandaxnead, Frank 
Warners (Insurance and Mort- 
gage Consultants). Argonville 
Insurance Services and J. Moore 
& Son. 

Bavarian Bier Kellers, P. T. 
Barrett (Builders). East Coast 
Leisure Developments, C. J. Hull 
(Electrical Contractors)* Birch- 
abbey.. Dukes Careers and 
Pelmead Properties. 

Skatewave. Tahiti Showers, 
Oino Coatings, Gemini Manufac- 
turing Company and Georgina 
Manufacturing. 


BY RAY MAUGHAN . 

THE BOARD of Global Natural 
Resources has set out the 
strategic objectives which it 
believes will be achieved with the 
proposed 544m acquisition of the 
privately owned Texas-based 
exploration group, McFarlane 
OIL 

This amplification fotiows a 
sharp attack on the prospective 
j acquisition from the New York 
brokerage house. Bear Stearns, 
which -has been co-ordinating the 
Warner-Bertoglio • faction’s 
attempt to wrest control of the 
Global board. . 

This battle will come to a head 
at Global's annual meeting in 
St Helier, Jersey, on September 
13. The dissident faction has 
forcibly expressed its objection 
to a deal which puts 13} per cent 
of Global's .equity in hands 
presumably friendly to the 
incumbent board. 

Mr Tony Geller and Mr 
Stephen Springer, the two Bear 
Stearns executives on the stump 
in Europe recently also made the 
, point that Global has the 
resources to make this deal in 


cash. . 

Global, in a statement released 
yesterday by Mr Frank Beatty, 
the chairman, made it clear that 
“ from the outset of negotiations, 
the shareholders of MacFarlane 
indicated they would require 
that the majority of the purchase 
consideration be in the form of 
Global stock to provide them 
with favourable tax treatment 
and to permit continuing partici- 
pation In the combined com- 
pany’s future expansion-” 

Replying to the Wamer-Beroo- 
KoHo' faction's assertion that 
Global stands to dilute asset 
values by paying- over book 
worth for McFarlane, the defend- 
ing board stresses that the inten- 
ded target's proven reserves con- 
sisted of 2.Sm barrels of oil and 
lL7bn cu ft of natural gas as 
reported by Patel/Walter/Church 
Associates, described as indepen- 
dent' petroleum engineers. 

Thus for purposes of filings 
with the U.S. Securities and 
Exchange Commission. Global 
would have reported the present 
value of the proven reserves to 


THE INDUSTRIAL strife which 
plagued Renison Goldfields Con- 
solidated (RGC) during the 
July-December period of 1981 
did not recur in the second half 
of the financial year ended June 
30, according to Mr Max Roberts, 
the chairman. 

The disputes, which included 
a six and a half week strike at 
RGC's big Renison tin mine in 
Tasmania, pushed the group 
intn a first-half loss of AS1.19m 
(£700,000). 

The comparative peace nf the 
past six months, coupled with 
the strength of the tin price for 
much of the period, should have 
helped to strengthen the mine's 
performance. 

This suggests that RGC, which 
groups the Australian opera- 
tions of the Consolidated Gold 
Fields group, could well have 
borne out Mr Roberts’ predic- 
tion at the halfway stage of a 
profitable full year. 


Mr Roberts was of course at 
this stage uoable to be more 
forthcoming about the full-year 
results, and emphasised that 
RGC still has some tough times 
ahead of it. Conditions could 
even get worse over the next 
12 months. 

H added that * he is still 
bearish on metal prices, which 
implies that there will be no 
respite in the near future for 
the Tasmanian copper producer 
Mount Lyeli or the Australian 
beach sand minerals operations. 

Mr Roberts said there can be 
only a handful of mines in 
Australia which are making “real 
money” at murent metal prtc.is. 

Nevertheless, RGC is still look- 
ing to the longer term, and thus 
is maintaining a high level of 
exploration spending. This is 
concentrated in three main areas 
of the south-west Pacific, namely 
Austraalia itself, the Philippines 
and Papua New Guinea. 


Turning to the latest agreement 
between the world’s tin pro- 
ducers. Mr Roberts said that the 
production quota for Renison 
involved a fall of 35 per ceot in 
output over the first quarter of 
the current financial year. 

He said he would have 
preferred, as less disruptive of 
operations, a quota which 
brought about a smaller fall in 
production.' say *20 per cent 
apnjied for a longer period 

RGC shares closed at 126p ip 
London yesterday, just a penny 
above the Towpoint for the year. 

STERLING INDUSTRIES (lilghi 
engineer) — Results tor the yBar to 
March 31. 1982. reported Jura 24. 
Shareholders’ Tund* £5.09m (E4,9m). 
Fixed assets Cl .71m (£1 .75m). Net 
current assets * £2. 66m {E2.55m). 

Increase in net liquid funds E357.354 
(El 11. 309 decrease). The group's 
ultimata holding company Is The 
Cayzer Trust, which at March 31. 1982. 
was shown as holding 68.6 per cent 
at the ordinary shams. Meeting; 
Cayzer House. EC, July 26, 12.30 pm. 


A^taemst Receiver in at Deanson 


In his annual statement Mr 
John Rosefleld. the chairman of 
Estates & Agency Holdings, 
anticipates that net rents receiv- 
able during 1982- will reach a 
level in excess of £900.000 and 
that .profits, before tax and 
extraordinary items, will be not 
less - than £300,000. 

He points out that the- group 
has a sound financial base and 
the value of its investment 
portfolio is signficantly higher 
than amounts stated in the 
accounts for 1981. Mr Rosefield 
adds that even hi the current 
climate, the group's properties 
remain virtually fully let and 
ihe good quality of its portfolio 
should ensure a continued satis- 
factory performance. 

As reported on June 25. the 
group returned taxable profits of 
£121,318 for the 19S1 year, com- 
pared with a loss previously of 
£55,108. The accounts sjbow 




OF NIGERIA LIMITED 


is pleased to announce the opening 
of its London branch (Licensed Deposit Taker) at 


29 / 30 King Street London EC2 

Telephone 01-606 6411 Tfelex 893013 


First Bank of Nigeria Limited, the oldest and 
largest bankin Nigeria, is an associate 
member of the Standard Chartered Bank 
Group. First Bank was established in Nigeria in 

1894, and operates through more than 180 

offices in that country. 





Mi 

ESTABLISHED 1894 


HeadOffice: Unity House, 37 Marina, Box 5216, Lagos, NigeriaTelephone: 661041 Tfelea 21231 


shareholders' funds at £8.43m 
(£5.97ml and fixed assets well 
ahead at £13.14m (£7.76m). Net 
current liabilities totalled 

£858.426 (£337.817). Meeting 

will be held at the Hotel Bristol, 
London Wl. on July 30 at 11 am. 

$I5m loan 
for Scottish 
mortgage 

The Scottish Mortgage and 
Trust Company has borrowed a 
further U.S.SISra for investment 
In long dated dollar bonds. Half 
of the money borrowed was for 
the six months to December 28; 
the balance was for 12 months 
to June 28 1983. 

The company now has borrow- 
ings of S35n> invested in long 
dated bonds. In spite of the 
problems of the large U.S. fiscal 
deficit, the directors believe that 
the current very high real 
Interest rates are unsustainable 
in the long term. 


HARSH TRADING conditions in reorganisation of the company, 
the printing industry claimed which- the. management bopea 
another victim with the might have led to a restoration 
announcement yesterday of of profitability later this year, 
receivership for Deanson (Hold- The business employs about 
Logs), the Walsall-based business 260 people and is based at five 
which asked for its own shares 
to he suspended on July 5. 


be approximately S49m u at 
' February 28 this year. 

Other assets take in prospective 
oil and gas acreage of between , 
S7m-S8m valued by Global's in- 
house technical staff and an 
unfiamed outside consultant 

Its seismic data subsidiary 
was valued at 54.4m at the end 
of February, the contract drtil- 
- ing subsidiary was worth ■ a « 
further 83.1m at that date, and 
its lignite reserves in Bruns 
County. Texas add up to 220m 
tons. This is sufficient to serve 
the -power-short Houston area for 
30 years from a 400 Megawatt 
power plant ‘ 

A circular giving full details 
of the ^McFarlane acquisition, is 
accordance with the require- 
ments of the London Stock 
Exchange, will be published "in 
due course.” The statement does 
not say whether Global will 
accede to one oF Bear Steams’ 
principal requests and give 
shareholders an opportunity to 
vote on the McFarlane deal 
before the critical meeting m 
September. 


David Scott 
asks for 
a receiver 

David Scott, tile Northampton- 
shire shoe group, yesterday 
asked its bankers,. Midland 
Bank and Hambros Bank, to 


which asked for its own shares plants in thearea of Walsall and shire shoe group. yesterua. 
to he suspended on July 5. Aldridge. Tfce receivers said asked its bankers. Midland 
The shares were'suspfended at that every effort would be made Bank and Hambros Bank, t 
20p each, giving Deanson a. to ensure the continuation of appomt a receiver. . 
market capitalisation of just the business and a further The . c ® in P a J£| 

£458,000. announcement would be made suspended at 13.5f> ahead of the 

The receivers are Mr Roy shortly. announcement giving ti a market 


market capitalisation of just 
£458,000. 

The receivers are Mr Roy 
Adkins and Mr Geoffrey 
Harrison, both from the Birming- 
ham office of accountants 
Thornton, Baker. Their appoint- 
ment was instigated by the com- 
pany's directors themselves after 
a series of talks with Midland 
Bank. 

“JDe&nson's failure seems to 
be attributable to a general 
decline in the company's turn- 


announcement would be made suspended at 13.5p ahead of the 
shortly announcement giving it a market 

y ‘ value of £620,325. ' 

: Earlier this year First 

t fc.ro n Hamblin, a privately-owned 

[\SS naVS chain of garages, bought 20.77 

“ " per cent of Scott's equity. In 

4? 7 Sm Tfir Apr 11 - Scott decided to close its 

tvi shoe manufacturing operations 

newsagent ' J W U Tnade*a pretax loss rrf 

G. KMght, a pnvwe nwagrac interim dividend. 


we aiUiUULAUie n gciiciai «■»- *-■ U-- Hru, rrht tJO«,UW iur U4C 

decline in the company’s ; turn- I K^?ToSSte h ^ wJSgeSt ended July 31 1 981. 
over in recent months.’ said Mr G. Knight, a pnv«e n«rcag«w interim dividend 
Harrison. The company incurred : ■ 


LONDON AND L’POOL SHARE STAGES 

London and Liverpool Trust Bridgewater Eas t 

announces that £300,000 12{ per has acquired a furl 
cent convertible loan notes 1985 shares and now ho! 
have been issued at par under (20.9 per cent) ordihi 
the agreement for the purchase Wiliam Leach— Mr 
of Talbographic which became ston, director, has bo 
unconditional on October 9 1980. shares. 

Under the agreement ■ a de- Moss Englneerlx 

f erred consideration (up to a Group have sold 64,5! 
maximum of £300,000 of loan shares. The first di 
notes) became payable to the made on June 29, am 
vendors dependent upon Talbo- to 14^22 shares, i 
graphic profits for the two year followed by furthei 
I period ending on January 31 30,000 and 20,000 sha 
1982. 1 and 2 ' respectively. 

Two of the Talbographic Harris Queensway 
vendors. Mr M. J. Harborow and k. J. Elton, a dfrectc 
Mr M. Robinson, are also 175,000 ordinary sbar 
directors of LLT. As a result of Osprey Petroleum— 
this issue, Mr Harborow has interested in 70,0(K 
acquired £210,000 121 per cent shares (5.38 per cen; 
loan notes - 1985 bringing his East of Scotland 
holding to £370,000. Mr Robin- The Standard Life 
son has acquired £30.000 ' loan Company purchase! 
notes which is his total holding ordinary shares bring 
oF loan notes. to 725.000 shares 17 


SECURITY CENTRES 
ACQUISITION 

Security Centres Holdings has 
bought 40 per cent of Gibraltar 
Central Security Corporation, of 


increase its holding to 67 per 
cent of the capital. 


nokiMUii, iuc wvmpauj - - fa , . - 

a loss ftp £347 860 in t*hp vfi3T to southnwost, for sibout £2 -5 rn, pay- • - 

last September. , abl ® m Qver * e SF PURITY CENTRES 

In February. Mr John Wilcox next seven months. SLCUKIIY UsjNitlro 

referred to a "long and arduous” ' Tttnwjw f ? r . ACQUISITION 

the last financial year approached . ^ 

£4m and net tangible assets at Security Centres Holdings has 

the end of that yqar were bought 40 per cent of Gibraltar 
- SHARE STAGES £672,000. Central Security Corporation, of 

aoAnn aiAuw . NSS ]ooks for coM^e^ie Miami, for £300.000 cash. It also 

Bridgewater Eas tales— Largs benefits from these large outlets, has the option progessiveiy to 
has acquired a further 82,500 all of which are in a trading area increase its holding to 67 per 
shares and now holds 566,200 well covered by the company. cent of the capital. 

(20.9 per cent) ordinary shares. ^ — ___ _ m—m 

Wiliam Leach— Mr J. Living- • __ ___ . . .. .. . 

ston, director, has bought 10,000 /• RANK RETURN 

shares. 

Moss Engineering— Biwater , incra&Mt+ior 

Group have sold 64,522 ordinary j Wednesday ; Decrease (-) 

shares. The first disposal- was ! Jutyi issa i for weak 

made on June 29, and amounted ” . 

to 14,522 shares, which was ' • 

followed by further sales of ' BANKING . DEPARTMENT 

30,000 and 20,000 shares on July _ 

1 and 2 respectively. • . i 

Harris Queens way Group— Mr Liabilities ' £ ■ ■ £ 

K. J. Elton, a director, has sold £ a P|f a L: — ■ — — ■ * 15*i}53*222 ~ 

17n000 ord inary share. Banka re Deposits 426,933^09 - 396.461,817 

Osprey Petroleum — duff Oil IS Reserve and other Accounts- I 1,922, B51, 570 | + 117,296,378 

interested in 70,000 ordinary - — j 

shares (5.38 per cent). a, 405^06.677- j. - 210,226,203 

East of Scotland Onshore— . ' : ■ ! • 



BANK 

RETURN 


'1 

- - ! 

Increase! (+) or 
Wednesday f Deoreaee (— ) 

July 7 1989 i for week 

- 

BANKING. 

1 

| 


Capital j 

Public Deposits-. 1 

Bankart Deposits 1 

Reserve and other Accounts- 


. * 14,553,000 
48,267,896 
425,533,209 
1,822,B51,570 

2,405^205,677- 


— 1,060,764 

- 336,461,317 
+ 117,298,378 

~ 210,226,203 


The Standard Life Assurance comment securities. 


Company purchased 175,000 Advances * other AccwurTti!!!-"";" « 
ordinary shares bringing bolding Premises Equipment a other seos.l 
to 725.000 shares 17.25 per cent). gotM — — j 


LONDON TRADED OPTIONS 

July 8 Total Contracts 2304 Calls 1974 Puts 330 ' 
j -j July I Oc t. Jan. • 

lEx'rcIselciosfngl I Closing! Closing 

1 price | offer ! Vo '* | offer 1 v °'- (offer Vo1 ' 


526,090,305 

1,228,550,249 

635,134,453 

15,065,886 

364,784 

3,403,205,677 


— 186^64,999 

- 109,368,412 

+ 14,138,532 

+ ' 11,238,194 

- 19,616 

— 210,226,303 


ISSUE DEPARTMENT 


BP icl 
BP icl ' 

BP ici 
BP (pi 
BP (di 
BP (pi 
BP ip) 

euro 
cu ici 

Cons. Gld fc) 
Cone. Gld (c) 
Cons. Gld(p) 
Cons. Gld (p) 
Ctids. (c) 
GEC (o) 

GEC (Cl 


GEC (c) 

GEC (0) 

GEC (Gj 
CEC (01 
GEC (pi 
GEO rpi 
GEC (p) 

Gr*d Met. (cd 
Gr'd Met. (cl 1 
Gr'd Met. (cv 
Gr’d Met. (at 
Gr’d Met. (el^ 
Gr’d Met. (pi! 
Gr'd Met.ipi; 
Gr’d MeL. (pu 
(Cl (Cl j 

ICI (q) '. 1 

ICI (pi 1 

, icr ip) . 

Land Sec. CcH 
Land Sec. (elf 
Mks ft Sp. ICK 
MkG &Sp.<t>4 
Mks asp. icif 
Shell (ei \ 
Shell (pi 
Shell ipj i 


Imperial (d 
Imperial (c) 
Imperial (o) 
Imperial (p) 
Imperial (p) 
Lasmo (o) 

Lasnra (c) 

Lonrho (o) 
Lonrho tc) 
Lonrho (e) 
Lonrho (o) 

Lonrho (p) 
Lonrho (pi 
P AO (c) 
PAO (0) 
RacaJ (0) 
Raeal .(c) 
Raeal (p) 
Raeal (p) 

RTZ <P) 
vaal Rfs. (e) 
Veal Rfs. (pt | 
c= 


Vo[ ICIosingi 
vo '' | offer ] 

- 26 

- 17 

1 9 

2 12 

6 a 

- 40 

- 66 

— 14 

2 3 

2 37 

— Vt 

3 26 

— 46 

2 • - 

. a s 

2 2SO 

6 200 

2 160 

1. 107 

3 75 

1 10 

8 16 

a so 

— 66 

• - 40 j 

3 28 

- 22 

— 9 

— 8 

8 7 

- 18 

13 24 


v °>- fSM 

4 32 

11 22 
1 | 14 

— 15. 

' -■ , 26 

1 1 44 

in 1 if 

- 1 13. 

- 1 « 

— ; 27 


— 220 

— 170 

21 135 

40 100 

- 20 

- 27 

22 48 

2 — 

2 44 

4 31 

2 26 

30 14 

4 4 

1 10 

2 22 

4 34 

13 > X8 

- j 19 

40 

1 22 

2 .. 20 

5 ' 23 

4 1 11 

- , 8 

- ' 28 

- 24 

— i 48 ] 


J Equity 
1 close 


Notes Issued...-. - 

In Circulation 

(n Banking Departmant 

Assets 

Government Debt. 

Other Government Securities 

, Other Securities 


10,850,000,000 

10,654^934,114 

15,065,886 

11,013^100 

4,258,381,713 

6,880,623,1 87 

^o.Bao.ooojooo 


70,000,000 

63,761,806 

11,238,194 


+ 330,924,365 

— 255,924,363 

"+ 78,000,000 


BASE LENDING RATES 

£i5£L- -v- 124% Grindiays Bank .. ..... ±124* 

"L 1 ®? l ns £ BaDk ■ Guinness ift « 

Amro Bank M Hambros Bank *124 

H^ry Ansbacher ...... 124% Hargrave Secs. Ltd 121®^ 

Arbuthnot Utham ... 124% .Heritable & Snokiii 124 % 
Associates Cap. Corp. 13 % ■Hill Samuel 
Binj « J2i% C. Hoare & 

12k HapoaUm Mi' "I! lijl g 1 ! 

gSMe-s.ai- s 

^ 11 

a&STSJt*:.-::: g,i "j&jg Ul 

Beneficial TrusfLtd. ... 18J% P slfeltm'* 1 ?!, TrU3t 
■Bremar Holdings Ltd. 131% RoxburchJ 1 * }?S 

Brit. Bank Of Mid. East 12 J% Slavmhu£.-e a ia, ? nt * B ^ % 

I Brown Shipley' lai^ 12 *% 

Canada Perm’r Truijt.., 13 % Trade 

Castle Court Trust Ltd. 13 % Trustee SairirKJ n 0 ‘‘u 

Cavendish G’tyTstLtd.14 § tcb Savin 8 8 Ba ° fc 

Ceda^Holdings 13^ • 12i< * 

■assssr ^ s*s 

SSSSL^SF il 


90 

12 

S8S 

1UO 

41a 

330 

110 

Ha 

63 

1UU 

3V 

48 

110 

101a 

25 

280 

33, 

3 

330 

5 

l 

bU 

23 


VO 

14 

i 

80 

7 

34 

80 

S 

IB 

80 

31a 

4 r 

90 

10 

75 

140 

11 

18 

lbO 

, -2 



420 

■ 40 

13 

46U 

18 

10 

490 

S 

- 

460- 

18 

•• 5 

360 

16 

6 

40 

l*r 

90 i 

36 

l«i 

f 


November' 
14is 18 
8J* 346 

5 179 

6 10 
12 - 

.46 . - 

19 - 

24 11 

16 9 

9 89 

41s 69 


February. 
18 ; 3 

121a, 12 

8 21 

6la - 

131a - 

57 - 

30 — 

26 r 

17 - 

Ids • — 

64 - 

a - 

- 13 - 

24 - 

12 2 

78 - 

43 - 

23 2 

52 — - 

30 

ImI = 


C. H. Coates . ; 131% 

Comm. Bk. of Near East 124% 


Consolidated Credits... 121% *• 7*d W dlpoiita 
Cooperative Bank .......121% b.ts% Shon S 

Connthian Secs. • mon,h 

The Cyprus Popular Bk. 124 % * on aUR 

Duncan Lawrie 12* « - S2'29° £io.o 

Flagil Trust lalta wt 00 ES0 - 00 

Exeter Trust Ltd. 13 ; &%. V- 000 

FiS Nnf' « % S 21 -day depo 8 ,„ 0VBr f 

Rnho'rr wl,^ CS ' 15 % ' I Demand dqopefu 

Rofiert Fraer u 


g- H °?re & Co. ”!""!!!tl2l% 
Shanghai 124% 
^ngniorth Trust Ltd- 14 % 
Knowsley Sc Co. Ltd. ... 13 % 

Lloyds Bank. • . . 131 <5 

LJmiled ••• 124% 
Man son Si Co. 131% 

Midland Bank 121% 

.■Samuel Montagu 12J% 

■ Morgan Grenfell I2i% 

-^stminster 124% 
Norwich Qenerar Trust 124% 
P- 5. ReltonA Co. 124% 
??S“ r K be . Guarantee 13 % 
Slavcnburg x-Bank 124% 

GI ^ rt ®red ...11124% 

12?% 

Trustee Savings Bank 124% 

it-D ■■ ■ 

■RUSH-iSS" » 

Wimnwt Sees. Ltd. ... 121% 
Yorkshire Bank ......... 124^ 

■ cSj£a. of ,hi «“*•« 

''iS? ‘’T* 5 t.mo«h 

- SJSS‘i2,i%® rt t#,m “• 000/,z 
* 0n ,um * 
csaooo 10Mt, £30.000 and war 


Ei.ooo and . evir 


21-day daposUa over fl.OCO-HFiTt'. 
Damand d(qpui(a 

Mortgage base nu, 


I- 

■! • 








- -.lxjb* h 


WnAi 


Financial Times Friday July 9 1982 


23 


Ssd Markets 


INTERNATIONAL COMPANIES and FINANCE 


Continental Illinois paper 
tumbles in Euromarkets 


MJAN FRIEDMAN 

PRICES of outstanding Con- 
tinental . Illinois Bank Euro- 
dollar bonds were marked 
sharply lower yesterday. Sev- 
eral houses suspended trading 
in the U.S. bank's paper, as the 
market became increasingly 
jittery about the its $lbn of 
energy loan- participations 
bought from Penn Square, hte 
Oklahoma bank which collapsed 
last week. 

The Continental Illinois 15} 
per cent 1989 issue stood 1 at 96 1 
to 97} last night, down 3 points 
in 48 hours. The 9} per cent 
1986 paper closed at 80 to 80}, 
also off 3 points, while the 14} 
per cent -1984 bonds were at94} 
to 95}, marked 1} points lower 
on the day. 

Mr A1 Pager chief executive of 
Continental’s London merchant 
bank, termed the mark-down ‘'a 
great over-reaction but 
admitted that his dealing room 
■was one -of the few market- 
makers in Europe still trading 
Ins bank’s Eurobonds last night. 


Prices ' of Eurodollar, Euro 
D-mark and Swiss franc foreign 
bonds aU closed unchanged 
yesterday after' another day o£ 
light volume and a nervous 
mood among traders. 

Credit Fonder de France has 
launched an unusual new $200m 
floating rate note issue through 
CCF, Morgan Guaranty and Dai- 
Icbi Kangyo. The seven-year 
paper bears a spread of } per 
cent above the three-month. - 
London interbank offered* rate 
(Libor), but allows holders to 
convert the “ floaters ” into 12j> 
per cent fixed-rate bonds matur- 
ing in 1992, The conversion is 
.possible every three grwnths and 
will begin at a discounted price 
which provides vd 15} per cent 
yield. The conversion bond 
price will be increased every 
three months and Hw> liiswmni 
will shrink every three months 
so that the yield moves } per 
cent lower until the price is 
par and the yield is 12.5 per 
cent af tea-three years. 


The OFF “ floater” allows 
investors to hedge oh interest 
rates while still obtaining i 
p.er cent over three-month 
Libor. It would then look in 
the interest rate for investors 
who reckon rates are likely to 
fall sufficiently to make this 
attractive. . 1 

Banque Worms, the French 
state-owned bank, is out with a 
$75m 12-year '‘floater" bearing 
a spread, of } per cent over six- 
moirtft. Libor. Credit Suisse 
First Boston and Banque Worms 
are lead-managers. 

In West Germany the widely 
expected DM 100m issue for 
Caisse Nation ale des Telecom- 
munications was launched yes- 
terday with a 9f per cent 
coupon through WestLB. The 
maturity is ten years. 

.In Switzerland, a SwFr 100m 
ten-y ear is sue is being launched 
for NYK Lines, the Japanese 
shipping group. Indicated yield 
is 7 per cent and Credit Suisse 
is lead-managef. 


Two EBIC banks to integrate 


BY PETER MONTAGNON, EUROMARKETS CORRESPONDENT 


EUROPEAN Banks Interna- 
tional Company, the association 
which groups seven European 
commercial banks, has decided 
to integrate much more closely 
the operations of sis two con- 
sortium banks European Bank- 
ing Company and Banque Euro- 
peexme de Credit (BEC). - 

A statement yesterday said 
that the two banks would have 
a unified .board, while other 
corporate arrangements con- 
cerning their integration still 
have to be determined. . 

EBIC said -that this would 
improve the range of services 
available to clients of thetwo 
banks: European Banking is a 
diversified : London merchant 
bank, while BBC, which is based 
in Brussels, concentrates on 


medium - term Eurocurrency 
Tending. 

The statement gave few 
details of how the integration 
would work in practice, and it- 
is understood that final arrange- 
ments may not be completed 
till early next year. .. 

* No change in ownership. of 
the two banks is planned. Both 
are owned by EBIC members 
which include Amro, Banca 
Commercials Italians, Creditan- 
stalt - Bankverein, Deutsche 
Bank. Midland, Ste Generale 
de Banque and Ste Generale. 

In balance-sheet terms BEC, 
whose total assets at the end 
of last year were BFr I55bn, is 
the fourth - largest bank in 
Belgium, while the managing 
director of European Banking, 


Mr S. ML Yassukovich, is one of 
the best known and most experi- 
enced bankers in the Euro- 
market. * 

In, a separate announcement 
Scandinavian Bank said it plans 
to acquire 66 per- cent of the 
outstanding shares of Banque 
Scandinave en Suisse of Geneva. 
This will give it consolidated 
assets of more than £2bn. 

The shares being acquired by 
Scandinavian Bank are cur- 
rently held by its existing 
Nordic shareholders who will 
receive new shares in Scandi- 
navian Bank in exchange for 
their shares in the Swiss bank, 
which will continue to be 
managed from Switzerland and 
have a separate board of 
directors. 


FT INTERNATIONAL BOND SERVICE 


The list shows the 200 latest international bond issues for which an adequate secondary market 
exists. For farther details of these or other bonds see the complete list of Eurobond prices which 
will be published next on Tuesday July 13. Closing prices on July 8 


U.S. DOUAR Oww*«n • 1 

STRAIGHTS • iqauad BM Offer day *a«k TiaW 

Aatna- Ufa IS aa/37. ... ISO : 101k 10T». +0*, +1* 14J8 
“ 76 

75 
400 
225 
ISO 
200 
100 
10O 
200 
50 


Amax Int, Finu 15*4 S2 
Am** 0/S Fin. 14*i 89 

ATT 14V 89 

Baker Int. Fin. 0.0 92 
BHP Finance 14V 89 ... 

Bk: Artier. NT SA 12 87 
Bk. Montreal 14*» 87- ... 

Bque. indo Suez 15 89 
British Col, Hyd, 14V 89 
Borough* Int IB?, 88 
Canada MV 87 750 

Canadair 15V 87 ...... .150 

Canadian Pac. 14V ."82 75 
Carolina Power 16V 89 SO 

C18C 16 87 .; 100 

Citicorp O/S 15 84/92 WO 
Citicorp O/S 15V 85/97 

CNA 15V 97 

Con. Illinois 15V 89 
Duka Pwr. O/S 15V 88 
Dupont O/S Cad. 0.0 90 
ecsc 14V 87 (April) ... 

ECSC 14V 87 (Juno) '... 

Ell "15V 89 : 

Eksponfinonm 14V 89 ... 

Gen- Bac. Credit 0.0 92 W 
Gan. Elec. Credit 0.0 S3 400 
Gatty OU Int. 1* B9 ... 

GMAC O/S Fin.' IS 88 
GMAC O/S 15V 86/97 
GMAC 0/B Rn. 15 89 
GMAC O/S Fin. 15 87 
Gulf Canada Ltd 14V 92 


125 
75 
. 100 
, 80 
300 
50 
30 
150- 
'50 


125 

ISO 

100 

125 

100 

WO 


Oirit OU 14V 84 - 175 

Gulf OH Fin. 0.0 32 ... 300 
Gulf State* O/S 16 90 - 90 
Int-Am. Dv, Bk. 15V 87 55 

Japan Dev, Bk. 15V 87 50 

Maw Bnmawtck 15V 89 75 

Ontario Hydro 14V 89... 180 
Pat. Qa» V El. 15V 83 45 

Phillips Patrol 14 89 ... 200 
R-l. RynWa. O/S 0.0 82 -400 
Saskatchewan 16 B9 ... 125. 
Shall Canada 14V 92 ... 125 

Spain 1SV 87 WO 

SupaHor O/S Fin. 14 89 125 
Swad. Exp. Cr, 15V 88 WO 
Swad. Exp. Cr. 14V 80 100 
Swad. Exp Cr. 0.0 54 200 
Texas Eastern 15V 89... . 60 
Union Carbide- 14V 89 150 
Walls Fargo I. F, IS 87 75 

World Bank MV 87 ... 500 
World Bank 15V 88 ... 250 


96V 97V 0 -0* 18.84 
93V »V -HIV -HP* 15.67 
101V VOH +OV fOV 13-70. 
25V 26V-0V +0V1BJH 
•94V »V +°V rOV 16.00 
8SV 90V 0 +OV 15.08 
- 94V 86V -OV -OV 16 02 
S6V 9SV+0V 0 18,13 
96V 96V +0V 0 15.58 
99V 99V -MR, -OV 1MZ 
B6V 97V -OV -DV 1530 
99 99V O -OV 18.66 

93V 94V — OV — OV 15.84 
100V 101 +0V +0V 16.23 
994 100 -0V~0V 16.00 
99*4 100V 0 +0VM.88 
98V 100V +0V +OV 1532 
95V 95*. 0 — 0V16.S4 
9BV 99V -IV -OV 15.97 
84V * +0V -OV 16.80. 
34 MV “OV -OV 15.15 
. 96V 96V -0*4 -OV 15.83 
96V 96V -OV -OV 15.83 
96V 98V -OV -OV 15.® 

96 95V 0 +1V 15.64 
•27V 27V+0V -0VW-43 

23V 24 +0V -OV 14.51 
96V 87V -OV +1*4 14.72 
WOV 100*. +OV +0V 15.75 
98V 98 -OV +0V 16.74 
96V 86V 0 -OV 15.87 
MV 98V 0 +OV15A2 
94V 95V -OV -OV 15.77 
96*. 97V -0V -0V 14.74 
28V Z7 0 -OV 14.64 
194V 95* 4 -OV -IV 17.16 
96V 96V +OV -HIV 16.09 
1MVW2 . OV +OV T4-B7 
100V WOV -OV -OV 16.® 
96V 97V -OV 0 15.45 
99V 100V +OV -OV 15.45 
94V « -rOV +0V 15J6 
28V 26V — DV —OV 14.81 
100V 101 0 +OV 15.75 

84V 95V -0*4 +0V 15J0 
S8V 99V 0 -OV 16.03 
93V 93 r * —0*4 +1V1S.BS 
97», 97V —0*i -OV 15.79 
93V 83V +OV -OV tfiJrt 
■is** 20 0 — OV 1431 

100V 101 +OV -OV 15.54 

97 97V +OV +1V 15.39 
97V 97*. -OV -OV 15.68 
MV 95V +OV +OV 15.60 
98V 98V +OV +OV 15.63 


Change on 

OTHBt STRAIGHTS Issued Bid Offar day weak Yield 
Ball Canada 16 89 CS... 100 |96> 4 97V 0 +OV 16-70 

Can. Pac. S. 16V 89 CS 50 197*, 97V +0V +0V 16.97 

CM. Fancier 17V B9CS 30 138V 99V 0 +0*, 17.33 

Hex Matio. 17V 8p .CS 20- 196V 37V +0V +1V 17A7 

OKB lev® CS 63 197V 97V +04 +1**16.97 

Q. Hyd, 16V 89 (My) CS 60 199V 99V 0 +0V16J» 

Quebec "Prov. 1&4 89 CS GO 199V 100 0 +0V16J»1 

U. Bk. Nwy. 9V90EUA W 32V 93V 0 +1VWJ0 
Amro Bank 10 87 FI ... ISO 38*. 99V +0V +0V10JJ2 
Bk. Maas fc H. 10 87 FI 75 97V »7V -OV -OV 10.70 

Eurofima 10V B9 FI 50 93V 99V 0 +0V 1036 

Inland 10V 87 FI 75 97V 87V -OV -OV 11.14 

Phil. Lamps 10V 87 FI... 100 99V 100V +OV +OV 10JZ3 

World Bank 10 87 FI ... ISO 97V 98V O -0VW37 

OKB 14 86- FFr 400 92V 93V 0 +0V16J8 

Sqlvay at C. 14V 68 FFr 200 92V 93V 0 +0417.48 

Ban official 14V 90 £ (D) 20 87V 88V +0V D 1633 

BFCE 14V 87 £ 3p 88V 99** -OV +0V 14.75 

BNP 13V 91 £. 15 93V 94V 0 +0V 14.86 

CECA 13V 88 £ — 20 MV 96V +0V +0V 1438 

F,n. Ex. Cred. 13V 86 £ 15 95V 97V 0 +0V 14.74 

Gan. Elec. Co. 72V 89 £ 50 93V 94V +0** +1V 039 

Hiram Walker MV ® £ 25 9B MV -OV +0*4 14.78 

Norsk Hydro. MV 87 £ 30 MV 99V -OV +0V 14.72 

Pnvatbonkan 14V 68 £ 12 96V 96V +0V 0 15.48 

Quebec 15V 87 E 35 101V 102V +0V +0V 14.74 

Reed (Nd) NV 16V 89 £ 25 104 105 +04 +0415.55 

Royal Truitco M 86 C... 12 98V 99V +0V +0V 14.34 

SDR Franca 15V 92 £... 30 100V WOV +0V +0V 15 35 

Swad. Ex. Cr. 13V ® £ 20 97V 98** +0V +0V 14A1 

Eurofima 10V 87 ^uxFr 600 96V 96V +0V +OV 1135 

Elfi 9V 88 LuxFr ..TT... BOO 92V 93V 0 -0411.48 


Average price changes...' On day 0 on week 0 


DEUTSCHE MAHK 
STRAIGHTS 
Aslan Dav.. Bank SV 82 ISO 

Australia 5V 91 200 

Austria SV 32 WO 

8 a relay a O/S In. 8V 94 100 
Bowatar Int. Fm. 8V 89 50 

Canada SV 89 - 200 

Comp. T*L Eap. 10V 92 100 
Cred. Foncftr 8V 92 ... WO 

Oanmirk 10V :92 100 

EOF 9V 92 -....i- 100 

El 6 8V 92 100 

lot-Ain. Oav. Bk. 9 92 150 
Nacnl. Rnaneiara 11 80 160 

Norik Hydro 8V 82 100 

Philip* Lamps 8V 92 ... 100 
PhHip Morris 84 90 ... WO 

Ouabae 10V 82 160 

Rente TO 92 TOO 

SNCF 8V 92 i 100 

Ttuemeutebahn 9V 94 50 

Tannew Int, 9 92 WO 

World Bank 94 89 100 

World Bank 8V 62 200 


Change on 
Issued Bid Offer day weak Yield 


MV SB 7 , +QV -OV 9.46 
102V W3V 0 -OV 8.® 
94V 95V 0 -OV 9.18 

95V 95V +0V +OV 9.00 
95V MV 0 -OV 938 
101 V W1V +0V 0 8.22 

100V 101 — OV — OV 10.35 
85*4 98V -OV -1 9.38 

102V WZV -OV 0 
100V WOV ■ 0 -O*, 

KV S54+04 -0*4 
96V 97% -OV -IV 
MV 97V 0 +0V 11.61 
97V .86*4 +OV +0V 8B1 
97*4 88*4 +0V +0V 8.81 
39V TOO 0 -OV 8-29 
102V 103 +0V-0V B.B7 
99V 100V +DV -OV 10.01 
95V 9BV 0 -OV 9J27 
W1V 102V +0V -OV 9.55 
97V 98V 0 0 9.34 

100V 100V +0V “OV 9.38 
S4V 86V 0 “OV 9.Z7 


9.70 

9.80 

9.16 

9.45 


V OmtJM, 0-1 OV _ - ■ - - a fti 

Average price durngas... On day 0 on week -OV 


FIBS FRANC 
HAIGHTS 
■ Canada SV 92 
Urn Dev. Bank' 7 92... 100 

ealaa 74 92 .. 80 

•trail* 6V 84 1» 

P6V 92 100 

I. Wat. rlnargia 7 92 100. 
F-Maxlco SV 92 M 

-op. Denmark SV 92 25 

3Wfl Zallarbech 6V 92 100 
Wpir*t TV 92 ....... ■ 100 

I. Fund Finland 6V 92 30 

»antiav. Bank S94... 100 

ke-.City .JBV 92 10£ 

nmunlan* TV 92 ■■■ 
lrhp int. Fm. 7V 92 
taui OSK 6V 92 ...... 

[hue BV 92 
«r rastand 6 S2 ...... 

lip MprTia 6V 92 ... 

Up Merrie 6V 9* ... 

de 7% 92 

ilasi Fie- SV 32 WW 
i. Lax. 04 Cut, BV 32 
inakl HmuMi. 6V 92 100 
der W«t*ar BV « 100 
■rlbeni Kraft BV 92 BO 
Average price bhanget- 


Change cn 

lulled Bid Offer day week Yield 
MO 100V 100V +0V -OV 6.14 
101V 101V +«V +0V B- 82 
86b 97 0 +0V SJ2 

104V 106V — OV — OV 5.88 
96V 96V -OV —IV 7J22 
100*1 10iv -OV “OV 6B7 
96V 97V +0V “OV 8.73 
104V 105V +0V +1V 7.62 
89V 99*i 0 -OV 6.78 
100 100V+0V-1V 7-23 
.98*2 99V +0V +0V 6*1 
99 88V “OV — OV 6.10 

100*. 106V +0V-0V 8.09 
•100 100V “0*. -OV 7.23 
94*4 * — OV -OV 8.27 
99 99*i — OV — OV 6.60 

95V 95V +0V -OV 8.97 
89V WOV -OV -IV 5 SB 
102V 103 -OV “OV 6.23 
101V 1WV 0. -OV 5-10 
96V 86V 0 -OV 8L24 

103VW3V+0V 0 8J6 

106*: 105V -OV “OV 7-17 
88 96V +0V “0*4 7X2 

96V 96V _ OV — OV «.78 
lOZljlOB -0V-0V 6.38 
On day 0 on week -OV 


35 

80 

WO 

80 

■too 

WO 

WO 

80 

70 

80 


STRAIGHTS 

SV 92 

Ansar. . Dev, 8V 91 
n Airlines 7V 47... 
Zealand SV 87 
IS Bank BV S3 


Change on 
issued Bid Offer day weefc'YMd 

16 87 87V 0 0 8X5 

15 101V 102V 0 +0V 8.M 

9 66>a 96V +0V 0 9X9 

iS 88*4 100*. -OV +0V 8.44 
96V 88V “OV -OV 8.66 


AueaQe price changes.. On Bhjr 0 «1 «"*■•* ® 


Bid Offer C^dte C.cpn C.yrd 
M S8V 15/10 16.69 15X7 
MV 9SV 8/12 15V IBM 
96V 99 29/10 15V 1532 
98V 99V 28/10 15 15.17 

99V 99b 27/7 16V 1633 
138V 98V 6/11 15.19 15.44 
M 99V 21/10 15V 15X7 

96V 98b 11/12 16V 16.61 
98V 89V 10/12 .15X4 15.57 
99 99V 23/9 16.69 16X1 

M*, 99V 24/9 16V 16X2 

99 99*i 24/9 15X4 15.55 

SB 7 ! 99V 23/12 16X1 16X6 
MV 99V 1/10 16 16.14 

88V 98V 9/9 14X9 14X1 
198V 99V 25/8 15X4 15X6 
t98V Mb 26/11 14b 14X7 

96V S9V 6/11 1531 15.45 
98V MV 29/10 17V 1738 
M 88V29/11 14V 14X9 

96b 99V 12/8 14V 14.77 

99V S9V15/7 15.19 1634 
-99V 99V 7/10-15X6 15X6 
99 99V W/B 16.06 16.18 

S8V 99V 2/12 14.19 14^ 
99 96V 17/12 15.81 15X3 

MV 99 23/9 15V 16X7 
98b 98V 24/11 15 15.15 

99 99V I/® 1531 15X3 

98V 99 18/11 14V 15.06 
99 99V 28/8 1531 15X3 

96V 99V 11/8 16V 16X6 

On day 0 on week 0 


FLOATING RATE 
NOTES. Spread 

Allied Irish 5V 82 OV 

Bk. of Tokyo SV 91 (D) . OV 
Bk. Nova Scotia 5V S3 OV 

BFCE 5V 88 ... OV 

BFCE 5V 87 OV 

BNP BV 89 WW OV 

Caisse Not. Tela. 5V 90 OV 

.CCCE ?V 2002 OV 

CEPME 5V 92 OV 

Chemical NY 5V 94 ... 0*4 
Cont. Illinois 5V 94 ... OV 
Credit Agricola 5V 97...- OV 
Credit du Nord'SV 92... OV 
Credit Lyonnais 5*« 97... 0*« 

Credit Nat. 5V 94 *OV 

Denmark. Kng dm. of 92 0*u 

Ireland SV 89/94 OV 

Kensallis Osaka 5V 92 OV 
Lloyds Euro fin 5V 93 ... 50V 
Long Term Cred. SV 92 OV 
J. P. Morgan 5V 97 ... SQV 
Nat. West. Fin. 5V 91... 50V 
New Zealand SV 87 ... OV 
Nippon Credit 5V 90... OV 
Offshore Mining 5V 91 OV 

PKbanken 5 91 OV 

Scotland Int. SV 82 OV 

Sec. Pacific 5V 91 OV 

Sociera Generate 5*« 95 0*a 
Standard Chart. 5V 91 OV 

Sweden 5V 89. - 0*4 

Toronto ■ Domin'* 5V 92 OV 
Averapa price changes... 

CONVERTIBLE Cnv. Cnv. Chg. 

BONDS date price Bid Offer day Pram 

Ajinomoto 5V 96 7/81-933 88V 82V -OV 534 

8ow Vailey Inv. 8 M ... 4/81 23.12 95V 97V +0V 68.18 
Bridgaatona Tire SV 98 3/82 470 82V 83V -DV —1X9 

Canon. 6V 95 1/BI 329 82 84 -1V-21X2 

Canon 7 97 7/82748 3 88V 90 -OV 2-23 

Chugar Pham. 7V 98... 7/82709.6 Mb 97V -OV 7.18 
FuKtau'Fanuc 4V 96— ..10/81 5641 79V 81V -IV 11.74 

Furukawa Elec. 5b 86... 7/HI. 300 78 78V 0 -5X0 

Hitachi Cable SV 96— 2/82 515 78V 81V -IV 533 

Hitachi Cred. Cpn. 5 96 7/81 1612 73 74b -IV 12.18 

Honda Motor 5V 97 3/82 841 79V 80V -2V 6.78 

Kawasaki SV 96 9/81 229 60V 62V -IV 17X1 

Manil 6 96 7/81 846X 92V 94 -OV 1X5 

Minolta Camara 5,96-10/61826.4 60 6lV -OV 35.76 

Mlnorco 9V 97 5/82 8.16 175 77 -IV 34.73 

Murtte 6V 96 7/81 2188 64 CSV -OV 22X6 

NKK6V 96 7/81 168 68 68V-1V-23.74 

Nippon Chami*C. 5 91 ...10/81 919 60 62 0 21.78 

Nippon Elactric 5V 97... 2/82 846 X2 83V -2V 6X1 

Orient Fin B nc« SV 97 ... 3/82 1206 83V 85V -1>, 533 

Sanyo Electric 5 96 .10/81 M2 61 62V -IV 1133 

Sumitomo Elec, 5V 97- 3/825773 79 80*, -Ob 931 
Sumitomo Met. 5V 96-W/81 296.1 61 62V -OV 43.06 

Swiss Bk. Cpn. 6V 96... 9/80 191 70b 72b -IV 31X6 

Koniahiroku 6 90 DM ... 2/82 585 100V 101V -0** 11X5 
Mitsubishi H. 6 89 DM 2/82 283 88V 89V -TV 31X3 

• No informstion available— previous day’s price, 
t Only one market maker supplied a price. 

Straight Bonds: The yield is the yield. is redemption oP the 
mid-price; the omount Issued ia in millions of currency 
units except far Yen bands where it is in billions. 
Change on week— Change over price a week earlier. 
Floating Rata Mates: Denominated in doflenc unless other- 
wise indicated. Coupon ahewn is minimum. C.dte— Date 
'next coupon becomes effective. Spread— Margin above 
•ix-month offered raw (t three-month; 9 above mean 
• rate) for U-S. dolljirs. C.cpn -Tbe currant coupon. 
C.yld-The currant yield. 

Convertible Bonds: Denoininatid in doHsrs unless other- 
wise indicated. Chg. day- Change on day. Cnv. dote- 
First date lor conversion Into shires. Cnv. pnci— 
Nominal amount el bond per share expressed m 
Currency of share at conversion rate fixed at issue. 
Prom— Percentage premium of tbs current effective pries 
of scqoirrng shores vie ths bond over the most recent 
price sf the shares. 


Merrill 
Lynch files 
for$300m 
‘shelf’ issue 

.By Our New York Staff 

HERBTLL LYNCH, the Wall 
Street stoqfcbrokms giant, 
yesterday filed' with the 
Securities Exchange Commis- 
sion for $300in .of debt 
securities under the SECs 
controversial "shelf registrar 
lion” rule. 

The role allows 'borrowers 
to pat a registration “on the 
shelf” and then sell securi- 
ties as and -when they want 
over a given period. Pre- 
viously, borrowers bad to go 
to the SEC every time they 
wanted to sell securities. 

The Merrill issue, will be 
underwritten by many of the 
Big names that have taken np 
cudgels in the “shelf rule” de- 
bate : First Boston, Goldman 
Sachs, Morgan Stanley, Salo- 
mon Brothers and Merrill 
lynch itself. 

Many firms have argued that 
the- rule will disrupt the mar- 
ket and reduce underwriting 
business. But others main- 
tain that it streamlines the 
capital-raising process. 

• The Federal Reserve Board 
said yesterday that it would 
hold hearings on September 
13 on a request by Bank of 
America, to buy Charles 
Schwab and Company, the 
largest no-f rills. cut-rate 
stockbroker In the U-S. 

The proposed acquisition is 
widely viewed as a key test 
of UJB. banking law which says 
that banks may not under- 
write securities: Bank of 

America argues that Schwab 
does not underwrite securities, 
it only executes buy and sell 
orders from customers. . 


Earnings gain 
for Chemical 
New York 

By Our New York Staff 

CHEMICAL New York 
Corporation, holding company 
for Chemical Bank, the 
seventh largest in the UjS^ 
and notable this year for its 
absence from the list of those 
involved in major banking 
misfortunes, has recorded a 
10 per cent gain in income in 
the second quarter. 

Before securities transac- 
tions, income rose from $53m 
to $ 58.4m there was a sharp 
increase in foreign exchange 
trading profits ..at ?l3.3m 
against $XL5nu 
At the . six-month stage. 
Chemical’s earnings were 13 
per cent up from ?106.9m to. 
$ 120.6m before securities 
dealings. 

The setback in equity mar- 
kets was reflected in a loss of 
$l-3m on securities trading 
for the six months, compared 
with a corresponding gain last 
year of S5-5m. 

Earnings per share for the 
second quarter were $2.09, 
against $2.16, before securi- 
ties trading, and $2.05 against 
$2.13 after. 

Per share returns for the 
half-year were $452 against 
$4.40 before securities deal- 
ings and $4.05 against $4.03 
after. 

For the whole of fiscal 198V 
Chemical earned $2 15.2m com-, 
pared with $17 5.2m in the 
previous year. 

Ford again 
omits payout 

By Our New York. Staff 

FORD MOTOR COMPANY 
will not pay a dividend for 
the third quarter of 1982, • 
haring already ommitted- 
diridend payments for the ' 
first half of the year. In 1981.; 
the company paid dividends at ’ 
the rate of 30 cents a quarter. 

In the year to date, Ford ; 
has sold nearly 7 per cent 
fewer cars than in 198L As a' 
result of substantial cost re- 
dactions, a number " of 
analysts have forecast that ; 
the second quarter figures — 
which are due at the end- of, 
this month— aill show that; 
the group has returned to the [ 
black with earnings of r 
perhaps $100m in the latest 
three months. But there is 
still considerable uncertainty, 
about the outlook for the rest : 
of the year. 

The latest dividend cut win 
save Ford some $36m. 


U.S. QUARTERLIES 


CHAMPION HOME BUILDB1S 


— 1982-83 1961*82: 

First quarter *_ * 

Revenue “-O'* 1 f®-' 1 ** 

Net profits 1*7 wd 

Net per share 036 0.05. 


CSX CORPORATION 


Second quarter 

Revenue 

Net profits 

Net per *har« 

Six month* 

Net profits 

Net per share — - — 2.W 


1982 

S 

1.31 bn 
63.6m 
1.67 

ll7Xm 


1983 . 
S 

IJSbn 

37.0m 

0X0 

124.8m 

3.04 


FEDERAL COMPANY 


Fourth quarter 
RevBnue 

profits 

per share 
Year 

Revenue ............... 

profits - 

per share 


Net 

Net 


Nei 

Ner 


1861-82 

S 

, 302.4m 
. 5.83m 
0.71 

1.16bn 

17.56m 

2.W 


1960-81 

S 

233.0m 

2.43m 

0.30 

1.1 bn 
20.12m 
2.47 


FEDERAL PAPER BOARD 


© The Financial Times Ltd, 1982. Rep rod union in whole 
or in part in -any form not pe rmit ted without written 
convent. Data supplied by. DATASTREAM-tmef national. 


1962 1981 

Second quwttr S S 

Revenue 1*4.7m 119.0m 

Net profits 4.S2m 8XBn» 

Net per share 0X0 1-16' 

Six months 

Revenue 337 .7nt 233.0m 

Nat profits .....' 10X7m 13.82m 

Nat per share ........ 1,69 1X0 


U.S. GROUP ‘WELL PLACED’ FOR SECOND HALF 


General Electric increases profits 


BY RICHARD LAMBERT IN NEW YORK 


EARNINGS growth at General 
Electric Company,, the leading 
UJ5. . industrial group, ac- 
celerated a little during the 
second quarter of 1982. But the 
company has lowered its fore- 
casts for economic activity in 
tbe second half of this year, 
and warn that the high level 
of interest rates is creating a 
drag on capital spending and 
threatens any sustained eco- 
nomic recovery in 1983. 

Second quarter earnings rose 
7 per cent, from $436m to 
$465m, lifting: half-year profits 
by 8 per cent from $795m to 
S842m. .Earnings- per share 
were $2.05, against $1.92 for the 
quarter, and $3.71 agaainst $3.49 
for the six montks. 

Half-year sales fell 'by 3 per 


cent, from $13.04bn-to $12.66bn, 
including second quarter re- 
turns down from §6.96bn to 
$6.63bn. 

GE’s chairman, Mr John 
Welch, said yesterday that the 
improvement in profit xnargins 
reflected' strong sales gains by 
some of the group's high tech- 
nology and service businesses, 
and a favourable trend in costs 
across most activities. Earnings 
from aerospace, aircraft engines, 
medical systems, nuclear fuel 
and services, information ser- 
vices and the financing sub- 
sidiary — GE Credit Corpora- 
tion — had risen by. $62m in 
flie latest quarter. This gain 
bad more than offset a decline 
of $33m in other businesses, 
mainly major appliances, along 


with lighting and engineered 
materials, Mr Welch added. 

Despite a weak June, there 
were signs that the recession 
had bottomed in the consumer 
segments of the business, but 
the capital goods activities con- 
tinued to decline, he said. 

Mr Welch commented that al- 
though tbe economic outlook 
remained uncertain, GE was 
well positioned for the second 
half of 1982. Its recently-agreed 
three-year labour contract 
would lead to increased pro- 
ductivity and competitiveness. 

Among individual segments of 
the business, power systems 
have achieved substantially 
higher earnings, mainly the re- 
sult of profitability in the 
nuclear fuel and service 


interests. Aircraft engines are 
oisn well ahead, with .a sharp 
improvement in military engine 
volume more than offsetting 
lower results on the commercial 
engine side. 

Earnings from consumer pro- 
ducts are considerably lower 
than in 1981, although the down- 
turn in the latest period was 
not as steep as it had been in 
the first quarter of the year. The 
setback results from lower 
physical volume 
# GE's offshoot, General 
Electric Venture Capital 
Corporation, has raised its stake 
in Gearhart Industries to 1.87ra 
shares, or 12.1 per cent. The 
total includes 668,400 shares 
bought in May and June at 
$14.90 to $20.59 apiece. 


McLouth Steel wins more time 


BY TERRY BLAND IN NEW YORK. 


PRINCIPAL LENDERS of 
McLouth Steel of Detroit, which 
is trading under Chapter 11 of 
the bankruptcy laws, have 
granted a one-month extension 
to its dosnre timetable. 

Their derision, taken a fort- 
night after refusing such an 
extension, was announced as 
McLouth confirmed that Tang 
Industries, a Chicago-based 
metals - warehousing and pro- 
cessing group, is negotiating its 
possible acquisition. 

McLouth has until October 1 
to conclude a .full or partial 
takeover as the only way to 
avoid bankruptcy. 


Other parties are believed to 
be interested in buying Mc- 
Louth but only Kobe Steel of. 
Japan has publicly admitted so. 

McLouth said that the exten- 
sion, tbe sixth, would allow it 
te present itself to prospective 
buyers as a going concern. 

Last month it retained Lazard 
Freres, the New York invest- 
ment bankers to help it find a 
bidden 

McLouth has roughly halved 
its debts to about $80 m. since 
December but it still needs a 
buyer for its steelhiaking assets. 
Industry analysts consider these 
to be relatively inefficient com- 


pared to modern ones. Excess 
capacity in tbe industry is an 
additional httrdle. 

About one-third of McLouth’s 
output goes to General Motors 
and the remainder goes to other 
areas of the still depressed 
motor industry. 

McLouth will have to begin 
dosing its operations in August 
to meet a final closure date in 
October. But the company 
stressed yesterday that its 
creditors have said they will 
grant extensions as long as 
there is “ evidence of sufficient 
interest by a purchaser or equity 
investor.” 


Kroger has a strong half-year 


BY OUR NEW YORK STAFF 

BOTH SALES and earnings 
have maintained their momen- 
tum at Kroger; second largest of 
the U.S. retail groups, putting 
the company well on target for - 
Wall Street forecasts for the 
full year. 

Half-year earnings rose 25 per 
cent from $45m or $1.60 a share 
to $56^m or $1.89 a share, while 
sales at Kroger’s 1,300 super- 


markets in 20 of the States, held 
a steady rise of 7.8 per cent, 
from $5.07bn to $5.5bn. 

For the full year, a 6 per cent 
gain in earnings is predicted, 
indicating the seventh, consecu- 
tive annual gain. • 

The second quarter brought a 
25 per cent gain in earnings 
from $28.6m to $35.9m or from 
$1.02 to $1.20 a share on sales 


7.7 per cent up from $2.59bn to 
$2.81bn. The figures reflect con- 
tinued firmness in margins at 
the group's gourmet food depart- 
ments within the supermarkets 
which helped offset the effects 
of industrial recession on 
Krogers stores in the mid-west. 
Also helping profits has been an 
improved performance at 
SupeRx drugstore chain. 


Hanna shares 
fall after pact 
with Norcen 

By Our New York Staff 

SHARES in Hanna Mining 
opened sharply lower in New 
York yesterday as investors 
decided the settlement of the 
bitter takeover battle with 
Norcen Energy Resources had 
brought most benefit to Norcen. 
a Canadian energy group 
beaded by Mr Conrad Black. 

Norcen has settled for a 20 
per cent stake in Hanna and to 
abandon its fight for 43 per 
cent. It will also pay $90m for 
Hanna’s 40 per cent stake in 
Hollinger North Shore Explora- 
tion and 20 per cent in 
Labrador Mining and Explora- 
tion. 

Norcen wanted Hanna 
because of its 27 per cent hold- 
ing in Iron Ore Company of 
Canada. Hollmger Argus and 
Labrador Mining, both con- 
trolled by Mr Black, own 10 per 
cent of Iron Ore. 

Under the Hanna settlement. 
Norcen has increased its share 
of earnings from Iron Ore Com- 
pany. ** We achieved what we 
wanted from the outset,'' said 
Mr Black in Toronto, “and 
Hanna got what it wanted— 
$90m in cash.” 


The Rural and Industries Bank 
of Vlfestem Australia 

(Guaranteed by the Government of Western Australia) 
announces the opening of its 

London Branch: 


specialising in 


Syndicated Loans 
Project Finance 

Chief Manager: 

John GMcGinniss 
Telephone; 01-623 7722 
Telex: 2S8971 


- 

3D * 

pi 

l-J 


3 


Foreign Exchange- 
fit Money Markets 

Forex Manager*. 
Andrew P. Cornish 
Telephone: 01-2S3 2853 
Telex: 8812113 


Western Australia fr First Bank in London 

The Rural and Industries Bank of Western Australia 
Licensed Deposit Taker. Assets exceed A$1.4 billion. 


This announcement appears as a matter of record only. 

The Notes and Warrants were offered and sold outside the United States of America. 




U.S. $75,000,000 
LASMO Eurofinance B.V. 

( Incorporated in The Netherlands with limited liability) 

Floating Rate Guaranteed Notes Due 1989 
with Warrants to subscribe 
.13% Guaranteed Bonds Due 1992 
denominated in U.S. dollars or pounds sterling 

Notes and Bonds unconditionally guaranteed by 

London & Scottish Marine Oil PLC 

{Incorporated in England under the Companies Acts 194S to 1967) 

Goldman Sachs International Corp. Williams & Glyn’s Bsmlf pl c 

Bank of America International limited . Banque de Paris et des Pays-Bas 

Banque Indosuez Barclays Bank Group 

Chemical Bank International Group .... . QBC Limited 

Continental Illinois Limited DG BANK 

• DeatsdreGen 

Morgan Grenfell & Co. Limited 

S. G. Warburg & Co. Ltd. 

July 9, 1382 


P w i t n ’ l i . 

Morgan Guaranty Ltd 



»' m*- i .inwr. jc 


Financial Times Friday July 9 1982 


This announcement qppeanuB a matter qfncordonfy 


July I9S2 


Companies 
and -Markets 


INTL. COMPANIES & FINANCE 


ENTE NAZiONALE PER L'ENERGIA ELETTRICA 

U.S. $100,000,000 

floating Rate Debentures due 1989 

Convertible at the holders’ option into 

13% Used Rate Debentures due 1992 
Guaranteed by the Republic of Italy 


Daiwa Securities Co. Ltd. Swiss Bank Corporation International Limited 

LTCB International Limited 

Banca Commerclale Italians : Commerebanfe Aktiengesellschaft 

Mitsui Trust Finance (Hong Kong) Limited Nippon Credit International (HK)Ltd. 

Sanwa Bank (Underwriters) Limited Sumitomo Finance International 

Yasuda Trust and Finance (ELK.) Ltd. 

DBS"Daiwa Securities International Limited London & Continental Bankers Limited 

Takugin International (Asia) Limited Westdeutsche Landesbank 

.■‘•.'ggy. Girozentrale 
‘ "*>• ? i * Yokohama Asia Limited 


Italian banks to consider 
funds for Ambrosiano 


BY RUPERT CORNWELL M ROME 


A GROUP of major Italian 
banks are due to decide in 
j Milan today whether to set up 
; a consortium to provide fresh 
funds for Banco Ambrosiano, to 
be channelled to some of its 
financially troubled overseas 
i associates. 

It is not clear how large the 
: injection of new resources 
would be, although it is reliably 
said to be “considerable." 

Nor Is it known whether the 
arrangement will be limited to 
the extension of guarantees for 
fund-raising operations by the 
Milan bank’s foreign offshoots, 
or whether it will involve an 
increase In the capital of Banco 
Ambrosiano Spa, the master 
company of the group, cur- 
rently standing at . L50bn 
(535.7m). 

The latest move is among the 
most important developments 
since the three commissioners 
began their probe of Ambro- 
sia no's affairs on June 21. three 
days after the body of Slg 
Roberto Calvi, its president. 


Riunione 

Adriatica 

DI SlCURTA 


The Company’s Annual General 
Meeting was held in Milan on 28th June 
1982 with Mr. Ettore Lolli in the chain 

The Directors’ Report and Accounts for 
RAS* 143rd financial year ended 33st De- 
cember 1981 were duly adopted. A profit 
of Lit. 10.4 bn. was recorded after 
allocating Lit 22.7 bn. to the Securities and 
Currency Exchange Fluctuation Reserve. 
A dividend of Lit. 1,400 per share was de- 
clared on an equity base three rimes larger 
than last year's following the increase, of 
capital from Lit 21 JS to 64.8 bn. 

The Directors' Report highlights the 
growth in business in Italy and elsewhere 
achieved during the year and notes the 
Company’s substantially strengthened assets 
structure, resulting in a solvency margin 
which exceeds by Lit 84 bn. the minimum 
legal requirement 

Premiums written. in Italy rose overall 
by 25%, with increases of 28% being attai- 
ned in the fire Account 33% in the Gene- 
ral Third-Party Liability Account and 35% 
in the Bond and Credit Indemnity Ac- 
counts. Aggregate growth in the Life 
Branch in Italy was 23%, with individual 
life assurance premium income rising by 
29.4?a This significant advance is attributa- 
ble to die successful introduction of new 
indexed life policies and combined insu- 
rance-investment plans. 

Premium income in other accounts also 
showed satisfactory growth, but in some 
branches such as Turd-Party’ Motor Liabi- 
lity and Marine and Cargo it proved ina- 
dequate to cover the higher cost of claims. 
The dividend will be payable as from 19th 
July .1982. 


MILAN - ITALY 


HIGHLIGHTS OF ACCOUNTS GO 
RAS ONLY, DOMESTIC AND FOREIGN BRANCH. OFFICES 


Premium Income 
Investment Income 

Claims, Maturities and other Benefits paid 
Insurance Reserves, Non-life Branch 
Insurance Reserves, Life Branch 
Life Sums assured 
Share Capital 

General Reserves 

Profit for the year 


PREMIUM INCOME OF THE 
RAS GROUP 
(ITALY AND ABROAD) 


Billion lire 



1976 i 1977 1 1978 1 1979 1 1980 1 1931 


. 418,362,752 

58,870,437 

J 227,632,158 

( 349,888,758 

1- 299,486,101 

2,308,131,264 

28,315,490 

109,833,032 

4,558,839 

SALES OF THE RAS GROUP 

Premium income breakdown in 1981 
OnaQ . 

RAS 

fin Italy and abroad) 418,362,752 

Other Italian Group 

Companies . 69,548,317 

Foreign Group 

.Companies 464,012^44 

Total premiums 951,923,913 


RAS Group, 

Life Business 

Total Sums assured 4,801,294,597 


This announcement appears as a matter of record only. 


£ The Commercial Bankof Kuwait SAK 

U.S. $40,000,000 

Floating Rate Certificates of Deposit 

duejuly,1985 

European Banking Company limited 


The Arab Investment Company . 
SAA • 

Europartners Bank (Nederland) N.V. 
Kredietbank International Croup 


Chemical Bank International 
Group 

Gulf International Bank B5.G 


Kuwaiti-French Bank 


Sumitomo Finance International 

• ‘ 

Agent Bank 

European Banking Company Limited 


Hat aTKasmaoxntaf /tart ctatLCHtraSrtascd^i^ 

wKams.pA 

$4,000,000 

Medium Term Loan 

Managedby 

Banca Nazionale del Lavoro 

Banca della Syizzeraltaliana 

Funds provided by . • ■ c 

Balboa Finance SA 
Banca della Svizzera It alian a. 

-Nassau Branch, Bahamas- 

Banca Nazionale del Lavoro < • 

-London Branch- 

Canadian American Bank S A 
• Tbiis.AG /;; 

Agent Bank . 

Banca Nazionale delLavoro 


was found under Blackfriars 
Bridge in London. 

The new funds are understood 
to be required by the foreign 
affiliates of Ambrosiano to cover 
resources committed to Pana- 
manian 'and other companies 
believed to be linked to the 
Institute per le Opere dt Reli- 
gione (IOR), the Vatican bank. 

This exposure in turn was 
' covered by letters of patronage 
issued by the IOR. The latter, 
however, has made clear that it 
is only prepared to accept 
responsibility for a 5250m loan 
by the Lima-based Banco 
Andino, controlled by Banco 
Ambrosiano Holdings of Luxem- 
bourg. 

It was being made clear 
' yesterday that the fresh 
resources were needed to 
prevent possible failures both 
inside and outside Italy. For 
that reason the banks commis- 
sioners axe confident that 
“good sense will prevail” and 
that the consortium will be 
launched. 

It was reported yesterday 
from Switzerland that negotia- 
tions are also under way for the 


disposal of Ambrosiano Luxem- 
bourg's 45 per cent holding in 
the Lugano-based Banco del 
Gottardo. However, such sug- 
gestions are being described m 
Milan as premature. Although 
a sweeping overhaul iff Ambro- 
siano’s foreign holdings — the 
source of most of the uncertain- 
ties surrounding the group— 
seems certain, the main con- 
cern at the moment is to regu- 
larise outstanding credits by the 
overseas subsidiaries. 

Sig Calvi’s disappearance a 
month ago was apparently pre- 
cipitated by the letter "of May 31 
from the Bank of Italy demand- 
ing an explanation for the 
exposure of certain affiliates, 
including the Banco Andino. to 
risks involving $1.4bn. part of 
which at least is said to have 
bee nunderpinned by letters of 
patronage from IOR. 

Pressure meanwhile remains 
Intense on the Holy See to make 
a clear statement on the in- 
volvement of IOR with Ambro- 
siano, following last week's 
request in Parliament by Slg 
Nino Andreatia, the Treasury 
Minister. 


Allianz hit 
by mounting 
competition 

By Our Financial Staff . 

ALLtANZ VERSICHERUNGS, 
the largest composite insurance 
group in Europe, will find It 
difficult to stop Insurance earn- 
ings . failing further In 1982. 
Pressure from competition and 
costs is continuing, says man- 
agement board chairman Herr 
Wolfgang, Schieren. - . 

But he told shareholders at 
the annual meeting Hiey will 
not be disappointed with the 
results- this year. Helped by 
high interest rates, _ non-in- 
su ranee profits will.be at least 
■ maaintained, he said. 

I Group domestic premium 
I income rose by about 3 per 
cent in- the . first half of 1982. 
This growth rate would ease 
in the second half by one or 
more percentage points as a 
result of poor performance in 
motor markets, which dominate 
the non-life side. 

Other private insurance 
business became, more difficult 
In the first half due to falling 
real incomes- but Allianz 
’ increased hew industrial 
business. Herr Schieren said 
foreign ■ premium .. . income 
growth was much weaker than 
last year’s strong growth. 


Italtel halves six-month losses 


BY JAMES BUCHAN IN BONN 

ITALTEL. the Italian, state- 
owned telecommunications 
company which is attempting 
to recover from a period of 
crippling losses and low pro- 
ductivity, more than halved its 
losses in the first half of 1982. 

It lost L50bn (535.5m) 
against a loss of LlOG.Sbn in 
the first half of 1981. Sales rose 
40 per cent to L350bn and the. 
operating margin, before finan- 
cial charges and other items, 
was positive to the tune of 
L30bn, against a loss of L40bn 


in the first half of 1981. 

The company, which belongs 
to the IRl-Stet holding com- 
pany, is in the course of a 
major programme of reorgani- 
sation and labour force reduc- 
tions to' recover from the 
effects of ill-planned expansion 
in the 1970s. 

That expansion was fatally 
undermined by the failure of 
Sip. the main telephone utility 
and another subsidiary of Stet, 
to maintain its ordering pro- 


gramme because of financial 
difficulties of its own. 

The problems of Sip are now 
being sorted out. so that orders 
to Italtel are. increasing. 
Italtel itself, whose managing 
director is Sra Marisa Belli- 
sarlo, is cutting its labour 
force, which is down to under 
25.000 against nearly 29,000 at 
the end of 1980. The Milan 
based company says that sales 
per head rose 50 per cent 
between the first half of 1982 
and the first half of 1981. 


Postbank proposals attacked 


BY WALTER BUS IN AMSTERDAM 


THE ASSOCIATION of Dutch 
banks, representing most of the 
Netherlands’ banking instituti- 
ons,-, has attacked the Govern- 
ment's present proposals for a. 
state-owned Postbank. 

A statement said that the 
banks were deeply disappointed 
that no changes had been made 
to tiie planned Postbank legisla- 
tion so that, from the intended 
starting date of January 1984, 
they would have to compete 
with a state-owned body paying 
less taxes and enjoying govern- 
ment guarantees for its lending. 

Under the Intended legisla- 
tion, formally adopted on Wed- 
nesday by the Dutch interim 
cabinet the Postbank will pay 


tax at a rate of only 36 per 
cent, compared with 48 per eent 
by the commercial banks. .Its 
loans will be backed in total by 
the state and its staff, will 
remain dvQ. servants, with in- 
flation-proofed pensions and job 
security. 

The Postbank, under the 
presidency of Mr Cornells 
Schotsman. Is a development of 
the existing Post Office Savings 
Bank and will have a virtual 
monopoly of control over Hol- 
land’s transfer payments system 
for bills and salaries. It will 
also be able to lend to corporate 
clients and is hoping, through 
such state-backed loans and by 
its dominance of Giro dealings, 
to become the country's fifth 
largest bank from day one of 


its operations. _ 

Holland’s commercial banks, 
with the sole exception of Rabo- 
bank, have been against the idea 
from the start, they claim, how- 
ever, that their criticism is not 
based on fear but on principle 
and on - practical grounds. 

The Minister for Finance. Mr 
Fons Van Der Stee, has said 
that the main idea of the pro- 
posed Postbank. apart from the 
creation of revenue for the 
state, is the creation of employ- 
' ment. In reply the commercial 
banks say that, with civil ser- 
vants status for . the Postbank' 
staff and with state-aided entry 
into an already crowded indus- 
trial loans sector, they see more 
jobs being put at risk than are 
likely to be created. 


Why the Philippines finds 


-Loudon Branch^ 


■imslSSSt 


THE PHILIPPINES Govern- 
ment has • met increased 
difficulty in obtaining desired 
terms on foreign credits by 
showing a preference for 'local 
borrowers momentarily to 
retreat from the international 
market place. Bankers abroad 
stand firm in increasing their 
interest charges and in shorten- 
ing their funds’ maturities, and 
The Philippines may / borrow 
much less titan the 51bn that 
it set as a 'target for external 
commercial borrowings ' this 
year. 

The Philippines’ reluctance to 
accept stricter conditions was 
demonstrated by the state-- 
owned National Development 
Company (NDC). which first 
approached the market early 
this year bill promptly with- 
drew after it failed to get its 
specified terms. 

NDC, which is the investment 
aim of the Ministry. of Trade 
and Industry, was negotiating 
for a 5250m, 10-year loan with 
a margin of 0^875 pier cent over 
the London interbank . offered 
rate (Libor). However, Hong 
Kong-based lenders. offered only 
5100m with an eight-year 
maturity and an interest rate 
of 1 per cent over Libor. 

The bankers refused NDC’s 
terms partly because, the com- 
pany is a newcomer in the inter- 
national market.. But more im- 
portantly, they are getting more 
concerned over the -country's 
weak economy. Exports of 
raw commodities and agricul- 
tural products did badly last 
year. 

For the first time .'in four 
•years, exports dropped In I9S1 
—‘by 4 per cent to Wffibn from 
1980’s 54-7bn. Domestic activity 
has also been sluggish thanks to 
a combination of tight credit 
and weak local demand. 

The outcome has been a static 
economy. Real growth rate last 
year was 4.9 per cent, Just 
marginally higher than': 1980’s. 
4.7 per cent But even the 4J) . 
per cent growth reported by the 
Government was disputed by the- 
International Monetary / Fund,"' 
whit* estimated the>eal growth, 
rate to be only 2.5 per cent 
. The Government is currently " 
negotiating with the IMF for a 
standby credit facility to help it 1 
■tide over its. huge payments’ 
deficit. As at the end of this 
year’s first quarter,- the overall : 


balance of payments deficit 
reached 5539m, almost equal to 
the 5560m shortfall incurred for 
the whole of 1981. 

Philippine economic planners 
have been pinning their hopes 
for a turn-around on a recovery 
from recession of mapor trading 
partners in the West, especially 
theU.S. 

Bankers, however, doubt if a 
global recovery ,is forthcoming 
in the short?terxn. They remain 
cautious about their exposure to 
the Philippines, and anxiety is 
running high over the con- 
tinuing decline in demand for, 
and the depressed prices of 
sugar, coconut oil and copper— 
the country’s major commodity 
exports. 

They are also not hopeful that 
manufactured exports can 
sustain their growth indefinitely. 

Bankers remain cautious 
about their exposure in 
the Philippines and are 
worried by the continu- 
ing decline in demand 
for the country's major 
commodity exports, 
reports Emilia Tagaza 
from Manila 

The shortfall in foreign 
exchange earnings has forced 
local debtors to resort* to stop^ 
gap short-term, but more costly, 
funds. With outstanding debts 
— both fixed term -and' revolving 
credits — having reached 5lfibn 
as at the end of last March, 
lenders' attention is now turned 
closely to the country's 'debt- 
service ratio. 

■ Last year, debt service ratio 
reached 19 per cent, quite dose 
to the. self-imposed limit of 20 
per cent. However, the IMF’s 
figure -for the Philippines’ 1981 
debt-service ratio is much 
higher at 22.fi per ' cent, since 
its computation does, not con- 
sider short-term debts as 
foreign exchange receipts. ' The 
Rulippine Government includes 
short-term, loans among its 
foreign .exchange receipts so 
that its. ratio is pulled down. . 

A foreign banker said that 
because of the alow inflow of 


foreign exchange . earnings, 
creditors will not be surprised 
if some Philippine borrowers 
ask for their debts to be 
rescheduled. .- 

Already, Atlas Consolidated 
Mining and Development, the 
country's largest copper pro- 
ducer, has paved the way for 
'this : move. Atlas’ creditors, led 
by. Bank of America and 
Wardley OTD, have agreed to 
another four-year grace period 
for an 5S0m loan, so that Atlas 
will resume payments in 1986. 

Many foreign banks are near- 
ing their country'-, limits for 
lending to the Philippines. An 
American banker says that 
banks are unwilling to raise the 
limits precisely because of the 
country’s weakening economy. 

Another reason why banks are 
unwilling to raise their lending 
limits is their uncertainty over 
the health of President Ferdi- 
nand ‘ Marcos. 

The latest big syndication 
obtained by a Philippine bor- 
. rower, the Central .Bank, still 
earned favourable terms. The 
. 5325m loan, which was co* 
managed by 12 foreign hanks, 
has a 10-year maturity, and a 
spread of 0.625 per cent over 
Libor for the first three years, 
rising to 0.75 per cent for the 
last seven years. However, the 
participants had difficulty, clos- 
ing the loan because the margin 
was too low for most banks. 

Abanker who was approached 
by the Central Bank said that 
some of the participants were 
fiwfHy persuaded to join the 
syndication because the bank 
promised them some collateral 
business. However, some of the 
banks' are.. still waiting to se* 

the ■ promise fulfilled. 

The terms of the 8325m 
Central Bank loan have been 
' made the guldeposls of all' 
foreign borrowings during the 
-rest of the year. The bank, 
which approves all foreign 
loans; - has stipulated that 
credits guaranteed by the 
government must have interest 
spreads that do hot eseeed by 
0.25 .per cent the terms of the 
latest -Central .Bank loan. 
Maturities have also ' been 
restricted,' for loam of more 
than 83m, . the minimum 
maturity required is eight tfl 
10 years. . 


f, 




I 









MdifiyBAfc • 



>es 


uii 


Kianiaai Times Friday July £ 1982 

- “**>» INTL. COMPANIES & FINANCE APPOINTMENTS 


25 


CONTRACTS 


S.A. Breweries taps U.S. 
banks for $100m credit 


BY BERNARD SIMON IN JOHANNESBURG 


SOUTH AFRICAN Breweries, 
tnc consumer goods manufac- 
turer aad distributor, has raised' 
$1 OCtai from a: group of seven 
leading U.SL banks, Mr Selwyn 
MacFariane, SAB’S financial 
director, confirmed ' yesterday. 

The credit mattes one 
rajsed late last year by AECI, 
the country's largest chemicals 
producer, as the biggest 
medium-term foreign borrowing 
by a private sector South 
African company. 

The credit is for seven years, 
and carries a spread of 0.75 of 
a percentage point over the 
London interbank offered rate 
for the first three years rising 
to 0.875 of a -percentage point 
for the remaining four. 

Seven years is normally the 
maximum maturity for toons to 


South Africa, although ESCOM, 
the electricity utility, recently 
arranged a small eight-year 
bond, ‘ 

The SAB Issue was lead man- 
aged by Manufacturers Hanover,- 
participants included Chase 
Manhattan. 

Like most other South African . 
loans, no' pubHc announcement 
has been made of the SAB 
credit The company is wor- 
ried that disclosure of the par- 
ticipating banks’ identities will 
embarrass them at a time when 
U.S, hanks in particular are still 
under some political pressure 
not to. lend to South Africa. 

Morgan Guaranty withdrew 
earlier this year from a 5160m 
credit for black local authorities 
outside Johannesburg, and U.S. 
banks have .largely confined 


their South African business to 
the corporate sector. 

The SAB loan is further evi- 
dence of the increasing activity 
of South African borrowers on 
international capital markets in 
recent months. Total kog^enn 
capital Inflows reached a record 
of R672m ($S90m) in the first 
three months at this year, com- 
pared to R357m in the whole of 
198L 

The private sector accounted 
for K340m of the Januaxy-March 
inflow. 

The authorities have encour- 
aged offshore borrowing to fund 
a record current deficit on the 
balance of payments. - In addi- 
tion, tighter cash flows have 
prompted many companies to 
increase their debt commit- 
ments. 


Advance at Mitsubishi Heavy 


BY YOKO SHNMTA IN TOKYO 

MITSUBISHI HEAVY Industries, 
Japan's largest heavy machinery 
m an ufacturer aud its 35 consoli- 
dated subsidiaries including 
Mitsubishi Motors, lifted consoli- 
dated net profits by 8.1 per cent 
to Y23.92bn (SMm) in the year 
ended March. 

HHTs consolidated sales rose 
by 12 per cent to Y3.013.9bn 
($11.8b'n), mostly as a result of 
higher sales of products except 
cars. . 

Of total turnover, sales of the 
sbqjbutiding division accounted 
for 9.3 per cent (up 423 per 
cent); the engine division 13.9 


per cent (lip 44.8 per cent); 
chemical plant 2.6 per cent (up 
75.3 per cent); machinery divi- 
sion S per cent (up 12.5 per 
cent); aircraft 5.3 per cent, (up 
15.9 per cent) and; motor' 
vehicles 47.3 per cent (down L9 
per cent). 

Exports rose 1&3 per cent to 
account for 37 per cent of the 
total. 

Pre-tax profits jumped by 72 
per cent to Y53bn because of a 
number of favourable factors. 
These included an exchange gawi 
of Y9.6bn compared with a loss 
of YfLSbn, a reduction in interest 


payments by Y3.Sbn to Y25.6bn, 
and economies of scale because 
of higher production volume. 

A higier corporate tax burden 
was largely' responsible for 
limiting the rise in net profits to 
8 per cent. 

Parent company * results 
reposted earlier showed a 4 per 
cent rise in net profils to Y12bn, 
while sales nose by 27 per cent 
to Yl,B84bn. 

The company is forecasting 
flat group profits for the current 
year despite a “moderate” 
increase in sales. 


Record income 
at Hsin Chong 

By Robert Cottrell in Hong Kong 

HSIN CHONG HOLDINGS, a 
Hong Kong property group, has 
reported record net profits of 
HK$101.5m (US$17m) for the 
year coded March. A sharp fall 
in extraordinary gains, however, 
leaves total net profits of 
HK$109.5m, slightly lower than 
tile HK$ll4.Sm achieved a year 
earlier. Extraordinary gains for 
the .previous year had added 
HK573.Sm to net profits of 
HK$41.5m. 

Last Week, the group's quoted 
subsidiary, Hsing .’.Chong 
Properties,- reported net profits 
of HK382.7®; ahead of the, 
HK$62nj forecast’-, made in its-f 
December 1980 flotation 
prospectus. 

The Hsin Chong' Holdings 
board proposes a final dividend 
of 16 cents a share, making 22 
cents for the year, whkh the 
directors say is equivalent to a 
120* per cent increase over the 
previous year’s dividend. 

A one-for-five sprip issue is 
proposed. 


Improved margins boost 
NTN Toyo Bearing 


BY OUR FINANCIAL STAFF 

NTN TOYO BEARING, the 
major Japanese bearing maker, 
increased consolidated net in- 
come for the year to March by 
10.6 per cent on a 5JS per cent 
rise In sales. The net rose to 
Y9.79bn ($38m) from YS£5bn 
a year earlier. Sales rose to 
Y219.62bn from Y207.52bn. 

Earnings per share eased to 
Y36.04 on 271.7m outstanding 
shares from Y37.33 on. 237.2m 
outstanding shares. 

The company predicted more 
modest gains in the current 
fiscal year. Consolidated net is 
expected to rise by 2.1 per cent 
to YlObn while sales are 
expected to show a 4.7 per cent 
increase to Y230bn, 

The improved margins in the 
year just ended reflected gains 
posted by the company in its 
unconsolidated results. As pre- 
viously-reported, NTN Toyo’s 
unconsolidated net jumped by 
37.3 per cent to Y7.45bn as 


sales rose by 6.5 per cent to 
Y189.74bn. 

NTN Toyo cited' strong sales 
and production plus cost-cutting 
moves for the earnings gain. It 
noted, though, that export sales 
in the EEC and South-east Asia 
were little changed from a year 
earlier although sales in the 
U«S. rose. 

• Mitsui Mining and Smelting 
Company posted a consolidated 
net loss of Y4.93bn (319.5m) 
in the year ended March, 
widening shdrply from a Y374m 
loss in the previous fiscal year. 
Sales dipped by 5.8 per cent to 
Y286J22bn from Y302.749bn. 

Mitsui traced the earnings 
setback in part to special 
losses resulting from the com- 
pany’s decision to dismiss 1,160 
employees as part of its recon- 
struction plans. Special retire- 
ment allowances paid out 
amounted to about Y3.7bn. 


Sanyo 
Electric 
lifts interim 
profits 16 % 

By Our Tokyo Staff 

SANYO ELECTRIC, a major 
integrated electric appliances 
maker, reported a 16 per cent 
rise in unconsolidated operat- 
ing profits to Y23.32bn ($91.5m) 
for the first half ended May, 
helped by buoyant sales of 
video tope recorders in Japan 
and abroad. 

Higher corporate taxes how- 
ever, limited the growth of 
unconsolidated net profits to 42 
per cent or to Y2L28bn on sales 
ahead by 6.7 per cent to 
Y369.13bn (SL45bn).- 
Sales of VTRs increased by 
87 per cent. Audio sales fell 

26.3 per cent, however, because 
ah audio equipment recession 
in . overseas markets offset 
■favourable domestic sales. In 
total, consumer electronics sales 
rose by 4.4 per cent to account 
for 53.5 per cent of total turn- 
over. 

Sales of electrical household 
goods were unchanged to 
account for 28.7 per cent of the 
total. 

Sales of commercial electrical 
equipment rose by 14 per cent 
to account for 9.3 per cent 'of 
turnover. Sales of paraffin 
space heaters jumped 138 per 
cent to account for 4 per cent 
of the total, thanks to strong 
exports to the U.S. 

Total exports rose by 5.4 per j 
cent to account - for 54.4 per 

cent of ‘turnover. 

Sanyo expects some recovery 
in the second half ending Nov- 
ember in exports ’ off cassette 
tape decks and further growth 
in sales of VTRs: 

Full year pre-tax profits are 
expected to rise by 3-8 per cent 
to Y48bn while net profits are 
expected to reach Y26bn, up 
8.6 per cent on sales of Y830bn,< 

10.3 per .cent The pomp any said’, 
it will consider a dividend risei 
from Y7 a share- last year -i£*| 
these earning targets a re*, 
achieved. 


New chief at 
Kenning Motor 


Mr H. Oxspring has been 
appointed chairman of 
KENNING MOTOR GROUP and 
Hr J. M, Foster, managing direc- 
tor, to fill the vacancy caused by 
the death of Mr David B. 
Kenning. Mr CL R. J. Kenning 
has bees elected secretary. Mr 
Oxspring became assistant com- 
pany secretary to 1963 and was 1 
appointed company secretary in 
1965 and director in 1974 

* 

- Mr Michael Valentine has been 
appointed a non-executive direc- 
tor of CRQDA INTER- 
NATIONAL. Mr Valentine is a 
senior director of S. G. Warburg 
and Co, 

* 

Hr Richard Thompson has . 
been appointed managing direc- 
tor of KONTAK MANUFACTUR- 
ING COMPANY. Kontak is a 
wholly owned subsidiary of EIS 
Group. 

★ 

Dr H. Berie Wright has been 
made chairman of the BUPA 
MEDICAL CENTRE. He 
succeeds Hr Harry Axton who is 
relinquishing the chairmanship 
in view of his other commit- 
ments. 

* 

PEAT .MARWICK MITCHELL 
AND CO. has made Mr P. jr. R. 
Evans a partner in its Liverpool 
office. 

* 

HALIFAX BUILDING 

SOCIETY has madq deputy chief - 
general -managers,* Mr- N. S. 
Watson and Mr R. C. Wheway, 
directors.. .. . 

* 

^Dr Tony J, W. Cameron has 
been .appointed chairman- of 
ROBERT H. LOWE, of which he 
has been chief executive sincq 
June. He succeeds Mr J. Robert- 
shaw, who has. retired. 

■ *■ * 

Mr Peter Maitland 1 has been 
appointed a director of 
ARBUTHNOT ‘ INSURANCE 
SERVICES and of GOLDING 
COLLINS. . 

- * - 

DELTEST SYSTEMS has 
appointed Mr David Hutchings 


as a non-executive director. Mr 
Hutchings is a director of Mid- 
land Bask Industrial Finance. 

. ★ 

Mr Seymour Fortescne has 

been appointed chief executive 
of BARCLAYCARD from July 12. 
He succeeds Mr Trevor Nicholas 



Mr Seymour Fortescne 

wbo has been, appointed divis- 
ional general manager of the 
bank’s management services 
department. 

* 

. Mr K.. CL Robertson has been 
appointed chairman of the EAST 
MIDLANDS GAS CONSUMERS’ 
COUNCIL until June 23 1985. 

Mr Ashley Erringlon, the 
London- . regional manager of 
SCHRODER LIFE ASSURANCE 
since January 1978, ‘ has been 
appointed agency manager, 
broker division from November 
1. • « 

★ 

Mr Eric MacheU, has been 
made financial directo r •• o f 
CEMENTATION ■ INTER- 
NATIONAL, a Trafalgar House 
Company. He was formerly 
managing director of the 
Davtim Steel Company. 


£4m boiler order 
for Babcock Power 


The Birmingham-based shell 
boiler division of BABCOCK 
POWER has won a contract 
worth nearly £4m to supply coal- 
fired boilers with associated 
plant, which will form part of a 
£14 Jin combined heat and power 
station project to be built by the 
Midlands Electricity Board at 
Fort Dunlop, Birmingham. 

Babcock Power will be pro- 
viding two of its LS type water 
tube boilers, fitted' with Style 
2SX travelling grate stokers, each 
rated at 25MW at 24 Bar. The 
Babcock Research Centre at 
Renfrew in Scotland will assist 
the MEB with some of the 
thermal design philosophy for 
the overall plant. 

★ 

A contract worth £2L7m has 
been awarded to TMC by British 
Telecom for the supply, in- 
stallation and commissioning of 
140M bit/s digital transmission 
systems linking London. Birm- 
ingham, Manchester and Read- 
ing. The contract calls for in-' 
stall ation to start in autumn 1&S3 
with completion of the system by 
early' 1984. 

Transmission of 1,920 tele- 
phone channels or other 
digitally encoded signals will be 
possible with the system which 
will be utilising a number of 
spare coaxial cable pairs in the 
60MHz installation. 

* 

MECHATHERM ENGINEER- 
ING has received orders totalling 
over £L5m for contracts to 
supply furnace equipment at 
home ~ and overseas. The orders 
include a complete al umin ium 
remelt shop for Aim ex. South 
Africa, a continuous coil spring 
making plant for the UK a lift- 
off cover furnace for Gray Tools, 
Scotland, a recuperative system 
for a billet heater at Alcan 
Benelux, and an homogenizing 
plant for the al uminium smelter 
in Bahrain. 

* 

ST GEORGE’S GROUPS 
Scottish subsidiary, bated in 
Edinburgh, has -just, signed a 
£1.5m long-term contract with 
GleneagTes Hotels. The contract 
covers the three hotels in the 
group — Gleneagles Hotel, Perth- 
shire;. Caledonian Hotel, Edin- 


burgh; and North British Hotel, 
Edinburgh; and is for a period 
of five years. St George's Group 
will provide a. comprehensive 
linen hire, garment and laundry 
service. 

FORD AND WESTON (South 
West) has an award from the 
City of Gloucester for 82 
dwellings at Tuffley, Gloucester, 
to be constructed in a 70-week 
period, contract value £Llm. 

* 

BOVIS has won a £l.lxn con- 
tract by the Yorkshire Water 
Authority to construct a new 
pumping station, tunnel and out- 
fall at Gilberdyke. 

The Dover District Council has 
also awarded a £540,000 coast 
protection contract to Bovis at 
the village of Kingsdown, 5 km 
south of Deal. 

★ 

BE5TOBELL INSULATION’S 
projects division has won a £lm 
.order from Babcock Power to! 
insulate the draught plant of the 
number four boiler which is the 
first unit of the three-unit Drag 
Completion project near Selby in 
Yorkshire. Work starts on 
October 1 and the contract period 
is 10 months. 

n»r 

MORE WORK for WHttPEY in 
June involves a £2.3m office 
block for tiie South Western 
Electricity Board in Trevenson 
Lane, Pool, Camborne, Corn- 
wall. This will have a floor 
area of about 4,500 square 
■metres with a ground floor of 
reinforced concrete slab and a 
reinforced concrete troughed 
first -floor— it will be steel 
framed from the first floor 
upwards. 

Jabs for the company's 
Bristol office include a £128m 
scheme for the Electricity- 
Supply Nominees of Millbank, 
London, comprising a two 
storey office block on the Aztec 
West development at Almondes- 
bury, .near Bristol. 

The Leeds office has a 
£246,000 refurbishment project 
from the City of York Council 
for 32 flats in Burdyke Avenue, 
York. 


Japanese 
builder ahead 

By Our Financial Staff 

TAISEI Corporation, Japan’s 
second largest construction com- 
pany, reported lifted consoli- 
dated net profits by 5.7 per cent 
to YISBobn ($60m) from 
Y14.43bn in the year ended 
March. Sales rose by 22 per- 
cent lo . Y97428bn from 
Y944.19t>n. 

Earnings per share edged up 
to Y19J5 from Y18.B9. 

The net earnings growth 
reflected a strong performance 
by the parent company. Parent 
company net earnings went - up 
by 13.3 per cent to Y11.76bn 
despite a sales increase of. only 
3 per cent to Y811.66bn. 

The pace of net earnings 
growth slowed down from 4L8 
per cent in fiscal 2980 as a 
result of sluggish construction 
activity during the year. 


Notice to Bondholders : 

CANON, INC. 

U.& Dollar Convertible Bonds due 1995 
(The “Bonds*) - 

ADJUSTH^n’ OF CONVERSION PRICE AS A RESULT OP 
CERTAIN EVENTS DESCRIBED HEREIN 

Notice is hereby given as follows: 

2. Adjustment for issuance of convertible securities: 

As a result of the issuance by Canon, Inc. on June 29, 1982 (the 
date of issuance) of its (1) U.S. DL 50,000,000 77b Convertible 

■n a /ai n * til — irr AAA rtnn er' n »‘m- 



version prices per share of (1) Yen 823, (2) Yen 825 and (3) 
Yen 823, respectively (in each case before adjustment for the 
free distribution of shares referred to in (2) below, and with 
fixed rates of exchange applicable to the conversion of the securi- 
ties of (1) Yen 24SJ90 = DL1, (2) Yen 123.08 = SFl and (3) 
Yen 104.03 as DM1, respectively, and owing to the fact that such 
initial conversion prices are each less than the current market 
price per share on June 29, 1982 of Yen 830 (as determined in 
accordance with Condition 5(C) (6) of the Bonds), the conversion 
price for the Bonds of Yen 810.60 per share in effect prior to the 
issuance of the securities would, but for the provisions of Condi- 
tion 5(C) (9) of the Bonds, be decreased to Yen 809.90 per share 
according to the calculation based on the total number of shares 
outstanding on- June 28, 1982 (the day in Japan immediately pre- 
ceding the date of issuance of the securities) of 347,772,944 
ghu rwy, pursuant to Condition 5(C) (4) of the Bonds. By reason 
of said Condition 5(C) (9), such adjustment less than, one Yen. 
shall be carried forward. 

2. Adjustment for free distribution of shares: 

As a result of the issuance on July 1, 19B2 of new shares for 
free distribution in the ratio of one for ten to the shareholders of 
accord as at June SO, 1982 (the record date), which free distribu- 
tion. of shares was previously notified to you, the conversion price 
OS carried forward as stated in (1) above of Yen 809.90 per share 
shall be decreased to Yen 736.30 per share, effective on Wf L 
1982 (Tokyo time), pursuant to Condition 5 (C) (1) of the Bonos. 

CANON, INC. 

. . Ryuzaburo Kaku 

President and Representative Director 

June 28, 1983 


Keppel Shipyard expects 
slower earnings growth 


KEPPEL SHIPYARD, Singa- 
pore's biggest ship repair com- 
pany,, expects a Slump in ship 
repair activity and a 'decrease 
in oil rig orders to hold 1982 
pre-tax profit growth to 10 per 
cent or less, AP-DJ reports 
from Singapore. 

In 1981, pre-tax profits 
jumped by 47 per cent to a 
record S$153m (U-SJ371m). 

Keppel also builds ships and 
oil rigs, but ship repairing pro- 
vided 73 per cent of its 1981 
profit. The company is 71 per 
cent owned by the Singapore 
Government. 

Mr Chua Chor Teck, the man- 
aging • director, said that 
although first-half results were 
slightly higher than a year 
earlier, be expected a deteriora- 
tion in the second half. The 
forecast was “ fairly gloomy for 
at least the next six months,” 
he said. 

Keppel is expected to release 
first-half figures around the 
end of this month. The com- 
pany’s first-half pre-tax profit 
Last year was S$61 hl 

Mr Tay Kim Kafa, the finan- 
cial controller, said Keppel’s 
pre-tax profits would rise “by 
at most 10 per cent” for 1982. 
Other forecasts are Jess opti- 
mistic. James Capel and Com- 
pany, a London-based stock 
analysts, said in a report that 
Keppel would achieve “mar- 


ginal growth.” The company’s 
after-tax profit is projected in 
the report to 'rise by only 3 per 
cent to S$90m. 

Keppel which was listed on 
the London Stock Exchange last 
month, recently set up a bank 
in the Cayman Islands which 
will have a range of commer- 
cial services. Mr Tay said the 
bank could be used to finance 
Keppel’s customers and it may 
also participate in syndicated 
loans. Last year, Keppel 
-entered the money-broking 
business in Singapore in a joint 
venture with a Japanese com- 
pany. In addition, the group 
owns a finance company which 
provides a range of financial 
services. 

A Keppel analyst estimates 
that the group’s financial 
services could provide up to 40 
per cent of group profits by the 
end of the decade. 


TheBank of Nova Scotia . 

U.S. $20<M>0Q,000 Floating Rate, 
Debentures Dur July 1994 
Fbr tbc six mooih period 
July Slh 1982 » January 10th 1983 . 

the Debentures win bear an 

interest rats oflbJiS per a unm 
c Coapoa Azaoam OTUSS839SS . 
payable JanuarylOdx 1983- 
Btskos Trait Company, London 
Mot Boric 



U.S. $50,000,000 
Hapoalim International N.V. 

Guaranteed Floating Rate Notes 1985 

For the six months t 

12 July 19S2 to 12 January 1983 
The Notes will carry' an 
interest rate or 161% per annum 
. 10 Coupon Value USSS43.33 . 

" Listed on The Stock-Exchange. London 
Agent fru n V — National Westminster Bank PLC. London 



US575,00(MH» 

LASMO Eurofinance B.V. 

(Incorporated in The Netherlands with limited liability) 

floating Rate Guaranteed Notes doe 1989 
with Warrants to subscribe 
11% Guaranteed Bonds due 1992 
denominated In U5. dollars or pounds sterling 
Notes and Bonds uncondrtfonaffy guaranteed by 

London & Scottish Marine Oil PLC 

(Incorporated In Engtoad under the Companies Acta 7948 to 7967) 
In accordance with the provisions of the Notes and the Agent Bank 
Agreement between Lasnto Eurofinance B.V. and Citibank, NA, 
dated July 6, 1982, notice is hereby given that the Race of Interest 
for the initial interest Period has been fixed at 16tV % pa. and 
that the interest payable on the relevant Interest Payment Date. 
January 10, 1983. against Coupon No. 1-will be U5S424-64 in 
respect of US$5jOOO nominal amount of the Notes. 


July 9, 1982 

By: Citibank, NA. London 


CflTBANt o 


Notice of Mandatory Redemption 

The Rural and Industries Bank of Western Australia (“the Bank”) 

A$30, 000,000 6 Vi per cent. Guaranteed A$/DM Bonds due 1987 

1 ■ NOTICE IS Hereby Given pursuant UJ ihe provisions of iheTrast Deed dated Kfeh August 1972 constkofingiheaboveBondi, that AS3^XK),000 nominal or die Bonds is 
due fo* mandatory redemption on 1 5ih Avgust 1 982. Pursuant to Clause 5(B) of iheTenns and Conditions Applicable to tbe Bonds, 1 , 1 66 Bonds have bees purchased by the 
Bant and ASi . 166.000 has been credited against the amount due far redempoon. 

2. The ferial numbers of ihe Bonds drawn Tor redemption are as follows:— 

12 1517 3000 4362 6010 7477 8885 10645 11981 15297 18377 20055 21 042 22296 23281 24433 25314 26297 27253 28357 29286 

27 1518 3008 4363 6027 7484 8904 10653 11982 15497 18387 20071 21046 22307 23276 24440 25339 26314 27264 28366 29291 

51 1525 3014 4368 6042 7489 8945 10655 11997 15521 18415 20077 21063 22331 23330 24455 25367 26328 27290 28394 29298 

71 1536 3016 4376 6056 7493 8950 10656 12010 15523 18500 20079 21076 22339 23339 24458 25368 26334 27301 28401 29323 

101 1562 3075 4381 6060 7501 8961 10672 12028 '15626 18513 20081 21081 22368 23340 24487 25377 26338 27303 28410 29348 

• — 122- 1566 3095- 4385 6108 -7505 9004. 10693 12039 15527 19196 20091 21082 22370 23341 24511 25380 26371 27305 28421 29358 

125 1566 3104 4410 6114 7508 9020 10809 12073 15536 19200 20095 21088 22378 23344 24515 25383 26372 27315 28430 29372 

133 1568 -3106 4412 6121 7519 9026 10832 12093 15538 19207 20099 21091.22383 23357 24530 25392 26375 27319 28473 29385 

141 1587 3131 4413 6124 7526 9049 10843 12110 15539 19235 20107 21096 22390 23361 24534 25395 26389 27333 28511 29400 

160 1614 ' 3168 4423 6140 7557 9055 10854 12115 15568 19242 20120 21097 22438 23379 24535 25402 26396 27342 28513 29408 

164 1618 3179 4424 6145 7577 9067 10859 12121 15569 19255 20123 21116 22439 23393 24541 25409 26409 27366 28515 29409 

171 1634 3187 4425 6147 7579 9087 10860 '12153 16079 19273 20127 21130 22459 23432 24561 25422 26413 27371 28533 29412 

180 1654 3199 4440 6208 7619 9092 10879 12154 16083 19281 20134 21137 22462 23435 24578 25429 26414 27373 28537 29413 

197 1673 3256 -4451. 6257 7642 9097 10882 12184 16088 13282 20145 21167 22464 23441 24589 25432 26428 27397 28539 29427 

199 1680 3276 4474 6259 7693 9111 10886 12186 16939 19287 20168 21173 22478 23443 24592 25447 28434 27401 28552 29437 

202 1689 3287 4477 6282 7721 9169 10909 12210 16942 19293 20182 21185 22480 23448 24593 25449 26435 Z7414 28573 29438 

211 1714 3313- 4514 62B3 7734 9173 10925 12217 16951 19337 20188 21188 22401 23462 24611 25455 26444 27438 28582 29446 

230 1717 3314 4518 6285 7736 9178 10937 12221 16952 19347 20191 21203 22494 23535 24615 25519 28464 27443 28590 29468 

245 1718 3319 4522 6316 ■ 7760 9182 10940 12224 17167 19351 20202 21255 22499 23545 24626 25536 26475 27444 28594 29473 

249 1726 3328 4530 6325 7766 9191 10943 12238 T71EB 19357 20211 21275 22500 23553 2463S 25542 26503 27448 28595 29477 

251 1753 3349 4538 6345 7783 9210 10950 12242 17169 19360 20224 21279 22507 23562 246S7 25548 26525 27472 28805 29478 

252 1757 3375 4541 6412 7793 9213 10978 12248 17606 19364 20226 21297 22525 23579 24658 25618 26539 27476 28629 29486 

254 1766 3383 4554 6418 7795 9223 11002 12253 17610 19372 20229 27298 22544 23615 24680 25624 26543 27479 28634 29490 

255 1777 3438 4558 6425 7805 9228 11015 12262 17617 19393 20268 21303 22577 23628 24701 25629 26552 27485 28635 29512 

257 1B08 3454 4810 6441 7812 9243 11024 12279 17634 19410 20269 21338 22584 23630 24702 25831 26556 27492 28837 29524 

260 1840 3474 4631 6444 7827 9249 11029 12281 17675 19416 20277 21355 22587 23658 24721 25636 26598 27532 28648 29535 

285 1842 3475 4634 6468 7847 9256 11030 12291 17686 19427 20297 21379 22588 23861 24742 25842 26602 27543 28661 29536 

309 1854 3478 4643 6477 7852 9260 11031 12306 17689 19428 20299 21392 22616 23685 24762 25670 26610 27567 28682 29558 

349 1855 3488 4652 6486 7857 9270 11039 12324 17694 19432 20315 21398 22621 23700 24753 25687 26812 27583 28696 29567 

377 1863 3499. 4691 6579 7861 9272 11044 12351 17704 19456 20322 21411 22625 23724 24757 25707 26619 27587 28704 29577 

382 1889 3522 4720 6587 7863 9305 11111 12370 17719 19459 20323 21415 22628 23734 24760 25711 26624 27643 28724 29581 

400 1872 3528 4728 6588 7869 9310 11149 12377 17734 19472 20324 21434 22639 23737 24770 25713 26637 27645 28725 29615 

401 1896 3535 4756 8627 7874 9314 11158 12410 17735 19478 20327 21448 22842 23738 24787 25720 26646 27662 28737 29624 

636 1927 3577 4775 6639 7899 9320 11161 12417 17739 19509 20331 21481 22648 23740 24807 25739 26652 27664 28744 29628 

639 1932 3580 4791 6687 7913 9360 11165 12423 17747 19525 20343 21498 22663 23742 24808 25744 26661 27672 28750 29644 

674 1934 3601 4795- 6703 7914 9362 11174 12912 17755 19538 20350 21503 22664 23748 24812 25751 2B670 27679 28774 29648 

689 1939 3614 4800 6711 7935 9386 11176 12915 17765 19539 20358 21506 22666 23753 24813 25767 26877 27703 28775 29659 

697 1944. 3619 4816 6729 7938 9404 11205 12918 17766 19554 20364 21525 22683 23756 24817 25797 26881 27737 28777 29860 

721 1951 3645 4838 6742 7942 9423 11208 12923 17786 19570 20389 21533 22695 23763 24822 25803 26689 27739 28808 29667 

729 1953 3649 4841 6750 7957 9424 11220 12933 17791 19572 20392 21546 22697 23780 24856 25808 26690 27742 28823 29671 

745 1954 3654 4855 6758 7985 9426 11225 12998 17792 19598 20429 21552 22747 23792 24858 25811 26702 27753 28829 29681 

746 7955 3712 4881 6781 7966 9447 11228 13009 17794 19601 20432 21572 22749 23793 24863 25815 26709 27782 28851 29684 

772 1957 3732 4898 6784 7977 9450 11232 13014 17799 19604 20446 21604 22778 23830 24887 25834 26719 27796 28857 29689 

794 1963 3765 4899 6787 7980 9464 11243 19017 17818 19615 20447 21633 22784 23844 24900 25835 26726 27800 28859 29701 

795 1973 3766 4904 6800 7989 9483 11249 13020 17833 19619 20449 21672 2Z798 23850 24924 25851 26743 27B03 28860 29702 

802 1979 ' 3770 4924 6805 7990 9495 11254 13023 17855 19621 20451 21682 22807 23853 24928 25859 26784 27805 28878 29709 

811 1987 3823 4927 6807 8015 9500 11257 13046 17870 19622 20461 21683 22809 23867 24937 25870 26787 27857 28897 29744 

812 1992 3847 4936 6811 8056 9502 11264 13048 17675 19624 20464 21698 22812 23901 24945 25882 26811 27868 28910 29746 

821 1996 3859 4946 6812 8064 9515 11268 13049 17892 19656 20465 21702 22840 23905 24947 2590726836 27S73 28916 29762 

831 2003 3873 4348 6816 8088 9519 11287 13308 17968 19665 20470 21724' 22847 23929 24948 25931 26860 2788D 28929 29777 

838 2006 3899 4950 6842 8100 9548 11290 13309 17973 19672 20471 21725 22869 23942 24956 25938 26864 27887 28936 29800 

839 2027 3903 4952 6852 8157 9553 11372 13334 17980 19685 20475 21730 22876 23968 24962 25946 28884 27895 28961 29828 

982 2032 3904 4965 6872 8167 9560 11421 T3376 17984 19688 20489 21734-22904 23969 24964 2S954 26888 27906 28966 29831 

995. 2159 3910 4968 6878 8169 9569 11429 13380 17990 19690 20545 21790 22905 23970 24974 25955 26914 27916 28971 29835 

1000' 2161 3920 4969 6881 8173 9597 11430 13400 17997 19695 20547 21807 22922 23984 24981 25967 26921 27919 28973 29866 

- 1067 2168 3932 4972 6907 8174 9637 11439 13407 18006 19704 20564 21825 22924 24033 24988 25979 26935 27920 28980 29867 

1079 2171 3937 4985 6936 8178 9638 11472 13413 18031 19735 20587 21356 22927 24036 24995 25988 26953 27949 28982 29880 

1081 2208 3966 5004 6941 8378 9663 11473 13414 18049 19740 20598 21862 22961 24063 24999 26011 26978-27950 28984 23886 

1105 2209 3969 5040 6959 8399 9672 11485.13420 18079 19743 20600 21878 22964 24068 25029 26038 26982 27963 28989 29891 

1171 2210 3971 5059 6965 8403 9675 11487 13432 18080 19745 20608 21881 22974 24070 25041 26053 26988 27980 28992 29900 

1115 2252 3981 5079 6967 8404 9687 11499 13434 18081 19752 20647 21888 22975 24078 25044 26055 26991 28004 29017 29902 

. 1118 2273 3985 5157 6970 8406 9712 11530 13449 18093 19753 20648 21905 22993 24088 25045 28066 26998 28007 29021 29905 

1137 2638 4008 5181 6980 8429 9721 1T532 13590 18101 19766 20671 21914 22996 24095 25047 26069 27000 28008 29052 29909 

1175 2665 4010 5212 6987 8433 9739 11545 13597 18110 19781 20688 21937 23006 24108 25061 26101 27018 28012 29056-29913 

1178 2667 4015 5215 7027 8436 9750 11599 13603 18115 19788 20728 ?1947 23015 24130 25062 26105 27024 28023 29074 29916 

1188 2670 4016 5220 7028 8458 9759 11602 13618 18126-19802 20732 21952 23025 24139 25073 26151 27026 28031 29085 2SS21 

1191 2674 4022 5250 7033 8490 9764 11618 13628 18129' 19806 20761 21971 23039 24142 25090 26154 27033 28094 29091 29925 

120T 2717 4062 5253 7049 8504 9798' 11631 13636 18171 19845 20778 21974 23040 24143 25095 26163 27042 28104 29101 2993S 

1206 2725 4096 5345 7069 8507 9804 11695 13853 18185 19848 20788 21990 23048 24144 25122 26164 27049 28114 29112 29945 

1270 2729 4108 5365 7076 8512 9807 11704 13666 18188 19852 20792 21993 23058 24177 2S14S 26177 27077 28132 29113 29953 

1271 2741 4123 5379 7088 8525 3845 11705 13699 18195 19871 20811 22010 23060 24198 25169 26184 27082 28178 29115 29960 

1259 2744 4126 5890 7095 8549 9859 11714 13708 18203 19884 20812 22025 23068 24214 25178 26187 27084 28189 29122 29979 

1284 2755 4150 5891 7105 8568 98C2 11721 14050 18210-19888 20838.22028 23070 24218 25180 26192 27093 28191 29130 29980 . 

1313 2786 4165 5905 7159 8584 9872 11722 14064 18215 1S88S 20SS6 22037 23071 24223 25182 26194 27099 281S2 29143 29989 

1391 2774 4176 5909 7162 8590 9875 11735 14065 18224 19894 20862 22052 23080 24228 25198 26211 27108 28198 29181 

1393 2785 4199 5911 7232 8618 9889 11739 14072 18225 19909 20904 22058 23099 24262 25224 26213 27114 28211 29153 

1396 2818 4209 5912 7238 8619 9896 11751 14078 18242 19936 20932 22070 23119 242S6 25225 26216 2712S 28220 29165 

1414 2834 4227 5913 7276 8643 9905 11758 14778 18244 19942 20338 22086 23135 24273 25229 26224 27130 28225 29170 

1417 2839 4246 5915 7280 8669 9945 117B5 14196 1S246 19951 20946 22098 23138 24290 25234 26225 27141 28248 29181 

1422 2854 4252 5917 7287 8681 9968 11797 14230 18259 19961 20952 22109 23139 24298 25235 26229 27144 28277 29184 

1424 2882 4294 5938 7387 8700 9978 11806 14237 18265 19970 20983 22129 23140 24311 25280 2B234 271B4 28278 29202 

1428 2890 4301 5939 7389 8719 9992 11824 14240 18270 19976 20986 22138 23151 2431B 2S263 26235 27185 28281 29218 

1434 2892 4309 5944 7391 8724 10001 11839 14583 18282 19988 20995 22153 23155 24317 25268 28241 27190 28282 29233 

1441 2908 4310 5946 7415 8778 10011 11850 14584 18287 19996 21000 22191 23165 24321 25270 26242 27210 28Z85 29238 

1459 2055 4313 5947 7433 8834 10012 11853 14635 18322 19997 21013 22214 23205 24366 25277. 26256 27228 28287 29245 

• 1496' 2971 4317 5980 7456 8835 10014 11884 14775 18339 20006 21017 22221 23237 24416 25279 26263 27233 28302 29281 

1507 2972 4360 5995 7467 8840 10016 11890 14781 18357 20013 21027 22236 23250 24418 25297 26278 27234 28342 29262 

1509 2988 4352 6001 7471 8882 10632 11894 15296 18372 20023 21032 22255 23254 24419 25305 23281 27237 28347 29263 

3. Interest in rcvpeci of the Bondsi tobc redeemed shall ccasclo accrue ou the redemption dale and wiil be paitibktoihatdflie in accordance fcith the^ TennsandCondiiitas 

Applicable to the Bondi. - - ■ , 

4. Payment of principal will be made aL the rule of AS! ,000 or, at the option of the bearer, DM3783. 10 for each Bond . 

5. Payment of Bonds to be redeemed in Australian Dollars will be made upon presentation and surrender thereof, together with ah Coupons appertaining thereto maturing 
-subsequent to the redemption date, at the main office of the National Bonk of Australasia in London or, at tbe option of the bearer, at ihe mam office of The Ciuue 
Manhattan Bank N. A. in London (“.'he Principal Paying Agent”) or at its other offices, or at the other banks, set out below. 

6. Payment of Bond* to be redeemed in Deutsche Marks 21 the option of the bearer will be made upon presentation and surrender thereof, together with aD Coupons 
appertaining thereto maturing subsequent to the redemption date, at the main office of the Weadeutsche Landesbank Girozemrate in Dhssddorf or, at the option of the 
bearer, at the main office of the Principal Paying Agent or at its other offices, or at the other banks, set out below. 

7. FOR PAYMENT IN DEUTSCHE MARKS. THE BONDS AND COUPONS APPERTAINING THERETO MUST BE DEPOSITED WITH THE PAYING AGENT 
FROM WHOM PAYMENT IS REQUIRED (TOGETHER WITH WRITTEN INSTRUCTIONS. WHICH SHALL Bg DEEMED TO BE IRREVOCABLE, THAT 
SUCH PAYMENT SHALL BE MADE IN DEUTSCHE MARKS) NOT LESS THAN FOURTEEN DAYS PRIORTOTHEDATEOFMANDATORY REDEMPTION, 

8. Bonds and Coupons ahafi be surrendered at the following offices:— 

The National Bank of Australasia Limited, Tlx Chase Manhattan Bank NA- Wctdcnttche T jmriedrmfc Ghrowif-q it^ Ttw n»»y Matihawa^ fom fc frf.A, 

6 Token house Yard, Woolgaie House, 56 Friedrichstns^, Ofle New York Plaza, 

London EG2 Qjleman Street, 4000Dassddarfl. 14th Floor. 

London EC2P 2HD. New York, N.Y. 1008L 


The Chase Manhattan BankNA-, Banquette Commerces A.. 
41 RfccCambon. 51/53 Avenue des Arts, 

Paris 75001. BrusseblWO. 


Credito ItaEano S.pA^ 
Piaca Cordnsio, 

Milan. 


KxcdktbankS-A. 

Luxembourgeobc, 

43 Boulevard Royal, 

Luxembourg. 


Nederiandse Crafetbank N.V., 
Hteengracht458, 

Amsterdam 1002. 


The foOowing Bonds drawn Tor redemption or August 1981 have not been presented: 1 1723 and 1 1734 

THE RURAL AND INDUSTRIES BANK OF WESTERN AUSTRALIA 
By the National Westminster Bank iJmnrrf as Trustee 

Dated: 9th July 19S2. 





Financial Times. Friday JuIy 9 ; 19S2 


THE PROPERTY MARKET BY ANDREW TAYLOR 


New threat to GLC 
planning powers 


l 


THE Environment Department 
is seriously considering pro* 

■ posals which would remove 
many of the remaining planning 
powers of the 'Greater London 
Council- Planning responsi- 
bility would he left largely in 
the hands, of the London 
boroughs. 

Draft regulations prepared by 
the Conservative-controlled Lon- 
don Boroughs Association and 
currently being studied by the 
Environment Department would 
abolish almost all the GLCs 
powers to determine planning 
applications for major commer- 
cial schemes in London. 

At present, the GLC has the 
right to determine planning 
applications for all office build- 
ings over 30,000 sq ft. It may 
also direct London boroughs to 
refuse applications when these 
conflict with the approved struc- 
ture plan for London. These 
powers would vanish if the Lon- 
don boroughs get their way. 

■ The proposals would bring 
the GLC into line with other 
metropolitan and county 
authorities which had their 
planning powers substantially 
reduced by the 1980 Local 
Government Planning and Land 
Act This' transferred much of 
the responsibility for planning 
decisions from the counties to 
the second-tier district councils. 
The GLC and the London 
boroughs were, however, ex- 
cluded from the Act. 

Under the proposed scheme, 
the GLC would be left with few 


powers. Instead of being able 
to determine applications which 
conflict with the approved struc- 
ture plan the GLC would only 
have to be consulted by the 
London boroughs. ' The GLC 
would have to respond to these 
approaches within 28 days and 
it would be left to the Indivi- 
dual London boroughs to deter- 
mine whether, in fact, a.scheme 
did fall outside the scope of the 
Greater LondairDistrict Plan. 

Residual powers left with the 
GLC would include the right to 
determine applications affecting 
mineral extraction, waste dis- 
posal facilities and airport and 
air passenger facilities.- The 
GLC would also be able to 
determine applications on cer- 
tain types of proposed develop- 
ments within “ 50 metres of the 
centre of a Category A metro- 
politan road." 

The latest proposals have 
been made at a time when the 
Government is generally con- 
sidering the future for the GLC 
and even if there is really a 
need fqp a centralised strategic 
authority for the capital. 

The Labour-controlled GLC 
says that the issue transcends 
political differences over which 
direction planning’ policies 
should take. It believes Chat the 
GLC should have a major say 
on key planning matters which 
affect the capital as a whole and 
not just individual boroughs. It 
says that its ability to take and 
police decisions would be 
removed if the new planning 
procedures were adopted. 


Unit trusts feel the pinch 


THERE HAS been a sharp drop 
in purchases of British based 
property unit trusts by pension 
funds and the industry is clearly 
going through a difficult period 
following the record sales 
achieved last summer. 

According to property unit 
.trust managers, some pension 
funds appear to be switching out 
of property unit trusts to con- 
centrate on direct investment in 

commercial property. 

The response of institutions 
to hew issues of units has been 
frankly disappointing during the 
first two quarters of this year. 
The June issue by Fle mi ng 
Property Unit Trust, for 
example, raised only £800,000 


compared with the record 
£13.Sm Fleming raised in the 
some month a year ago. 

Several institutions- also 
appear to have been reducing 
their existing holdings iff 
• property unit trusts.. Pension 
Fund Property Unit Trust,' in 
its annua l report published last 
week, revealed that last year 
the fund spent £5.1m more on 

repurchasing existing units 

than it raised from new 
‘ issues. 

Fleming, which requires six 
months’ notice of repurchases, 
which can be made only twice 
"a year, says it has had no recent 
redemptions but is aware that 
some institutions have sold its 


units independently of other 
funds. 

Lazard Property Unit Trust 
has also been having a more 
difficult time. Sales of new 
issues in March and June this 
year each raised around £L26m 
compared with sales of £6.55m 
and £7.06m in the correspond- 
ing months in 1881. 

Lazard also saw an increase 
in the level of redemptions 
earlier this year. In March 
redemptions totalled £2.87m 
while there was also a negative 
cash flow in December when 
redemptions totalled £2.4m com- 
pared with £1.5m raised from 
the December new issue of 
units. 

Mr Peter Archer, surveyor to 


Lazard Property Unit Trust, 
said that the redemptions bad 
largely reflected one or two 
special situations and that 
redemptions in June had been 
only £4,126. 

Nonetheless it is a worrying 
time for property unit trust 
managers, who are concerned 
that in a difficult market some 
of the trusts’ traditional 
customers may- be looking for 

direct property investment at 
tiie expense of new unit trust 
business. Mr Archer stresses 
the performance of property 
unit trusts, which, he says 
"have generally outperformed 
direct investment into property 
over the past five years.” 


THE NATIONAL BANK of 
Australasia has bid success- 
fully for the second stage of 
Q uant as Airways' Interna- . 
tional Square development In 
Sydney. In tendered a lamp 
sum premium of A$X8m 
(£10.1m) for the 125-year 
ground lease. At the same 
time the bank has taken a 
15-year lease on around 
190.000 sq ft of offices *in the 
adjoining 42-storey Qantas 
International Centre, which is 
now nearing completion. 

The hank is acting on 
behalf of its new parent. 
National Commercial Banking 
Corporation, which will be 
formed as a result of its 
merger with the Bank of GBC. 


• A rare eTent in the City 
of London comes np shortly 
with the offer for sale of three 
prime freeholds. Following 


the recent opening of its 
newly built London head- 
quarters at 24 Lombard 
Street, the Royal Bank of 
Scotland is to sell offices at 
Lombard Street, Birchln Lane 
and Bishopsgate. 

Agents Drivers Jonas ex- 
pect the properties to realise 
over £10m. ■ All three are re- 
garded as substantial refur- 
bishment, or reconstruction 
prospects. 

• City of London office space 
availability declined last 
month, to 228m sq ft, for the 
first time since Jnly last year, 
say Richard Saunders and 
Partners in their Jane 19JH 
City Floorspace Summary. 
They will be watching to see 
if this is the beginning of a 
trend, or part of a normal 
seasonal pattern. 

The summary also notes 
that space fell on the City 


fringe, now standing at 4.06m 
sq ft. and that space let- last 
month at 174.000 sq ft was the 
highest figure since last 
November. 


• A letting of almost 12,000 
sq ft at 8-9 Buckingham Gate, 
opposite Buckingham Palace, 
is understood to have 
approached the rent of 
£165,000 asked for byCiuttons 
and RIehard Ellis, agents for 
the landlords, the Crown 
Estate Commissioners. Ber- 
nard Thorpe acted for the 
new tenants, the Association 
of District Councils. 


Chinn ocks in their new sur- 
vey on Industrial Rents and 
Rates 1973-1982. 

Rises in rales vary from 
only 1 per cent in Heathrow 
to 32 per cent In Luton. Com- 
ments Debenfaam Tewson 
Partner Frank Eul: “Tenants 
who do not have a very 
narrow location requirement 
are now much more attuned 
than previously to ’shopping 
around’ to get the best value- 
for-money package that they 
can.” 


• Rates on 16 prime indus- 
trial locations show an 
average increase of 13 per 
cent for the current rating 
year, while rent increases are 
on average well below infla- 
tion at 3 per cent compared 
with 10 per cent . last year, 
say Debenham Tewson and 


• Richard Ellis's disposal of 
the National Building 
Agency’s lease at 7. Arundel 
Street. Londoon, WC2 offers, 
they say, an opportunity for 
a party to acquire a lease and 
have a fixed rent for a 21- 
year period. The lease on 
the building expires in Decem- 
ber 2007 and has a single rent 
review in December 1986. 


Yields softening 
in U.S. market 


U.S. PROPERTY yields are 
softening and look set to con- 
tinue to do so over lire next few. 
months. Oversupply and insti- 
tutional concern over short term 
rental growth has hit the in- 
vestment market while 
developers are suffering from 
high interest rates, falling ten- 
ant demand and an ultra-con- 
servative approach to construc- 
tion finance from the specialised 

banks. 

Recent visitors' to the U.S. 
property scene sec a range of 
short-term possibilities : At one 
end of the range, an extension 
of existing problems caused by 
a banking liquidity crisis which 
could precipitate a crash of 1974 
UK dimensions. At the other 
the rising UJ3. institutional 
commitment to long-term 
property investment which 
could underwrite attractive buy- 
ing opportunities in a mailer of 
months. 

In a downbeat “first" of a 
series of Tegular reports on the 
U.S. property market, Erdraan 
Rubloff International, the asso- 
ciation of Edward Erdman in 
London and Arthur Kubloff 
and Company in Atlanta, 
Georgia, grasp the American 
nettle with the implication that 
the short-term sting could have 
long-term rewards. 

They say flatly that the early 
months of 1982 have seen a 
progressive softening in the 
investment market, and that 
yields are getting softer by the 
month. Their estimate of prime 
investment yields for medium- 
sized, new, rack-rented property 


are 91 to 10 per cent for offices, 
11 to 12 per cent for industrials 
and 10* to 11* per cent lor 
commercial centres. 

For offices the 1970s picture 
of undersupply s being 
replaced by' a negotiated 
balance moving in favour of 
tenants. One example is in 
“Washington where an estimated 
14m sq it scheduled for eom- 
pie t ion over the next three to 
four years outweighs a take-up 
rate “currently running at 2m 
sq ft a year. 

Industrial experience reflects 
the UK recessive pattern; mean- 
while Krdmau Rubloff detects 
two distinct trends, with major 
industrial schemes tending to 
be restricted to owner occupiers 
while speculative developments, 
they say, generaly provide small 
areas in buildings. which often 
incorporate cither substantial 
office areas or concepts aimed 
at high technology users. 

Retailing, a* always, is a 
mixture but this time with 
more downs than ups. This 
appears to he borne out in the 
report which talks about 
reduced demand from anchor 
tenants and a tendency for 
saturation to occur in suburban 
areas. 

The upshot could be declin- 
ing values in many areas, The 
brave decision — and not neces- 
sarily foolhardy, given the level 
of yields, and the time horizon 
of potential investors — will he 
the one which senses the 
bottom of the market. 

WILLIAM COCHRANS 



S.V 

A Development by the Midland Bank Pension Trust Ltd. 


HAMMERSMITH W.6. 


New Air Conditioned Office Building. 
A4/M4 Adjacent 
3 Tube lines nearby. 

Direct link to Heathrow. 



UP ID 89,750 SQ.FT TO RE LEX 


Exceptional Specification, including 
AutomalicTelephone system 
installed & Generous Private 
Parking Facilities. 


OCCUPATION OCT *82 


Joint Sole Agents 


01-6297282 


JC' " ~ L **• - * t'?' 7 ' ' r '* • ClMWteA'W.t " 014936040' 

"* . _ . w*«- .* t-i. 

;> 


H Jones Lang 

52 

v t bartered Surveyors 





Now Only £10.50 per *2 n 


In Knightsbridges 
Premier 

Office Building 

6200 square feet 

To Let 


+ ■ * 
l ! 


p 

E! 1 

MG) 

HI 

row 

GiO L D 

H 

1 LL 


OiatSTM Valuator! Sucvc/aS&'d Eiuie Agsfis 


01-7344177 




House 15 Qfford Street LmlcnWIXIRF 


ONTHE INSTRUCTIONS OF 

GUARDIAN ROYAL EXCHANGE ASSURANCE GROUP 


No.l PEPYS ST. 

LONDON EC 3 


SELF CONTAINED 
AIR-CONDITIONED 

OFFICE 

BUILDING 

WITH CAR PARKING 


27,000 


SQ.FT 


TO LET 



CITY OF LONDON OFFICE 

39 KING STREET, LONDON EC2V 8BA 01-6063851 

also London WlXdinbuigh aid overseas. 


K) for Industry 



ASHFORD, KENT 

Two factory units 
6,500 sq ft each 
TO LET 

BORDON Nr Farnham 

Industrial Sites 
FOR SALE . 

Industrial Units 

3.000-12.000 sq. ft. ■ • 

TO LET 

LONDON SE15 ^ 

New Ware house /Factory Unit 
13.000 sq.ft. 

TO LET 

LONDON SW9 V: 

22l.OO0_sq.ft, ' 

HeadqiTarters/Factory/Warabdose] . 

Complex 

FOR SALE FREEHOLD 


PARK ROYAL NWIO 

Superb New jj(ifr 

From 2,800 sq. ft.’ " J ' 

TO LET NOW 


PETERBOROUGH 

■41,730 sq. ft. on 6.95 Acres 
Factory and Land 
FREEHOLD FOR SALE/TO LET 

TOTTENHAM N1S 

13.550-8WW0 sq.ft 
Factory/Offi.ce Premises 
Suitable for Electronic/Laboratory 
Use 

TO LET AT LOW RENTAL . . 

WOOD GREEN N22 

6,000-24,000 sq. ft. 

Modern Factory/Warehouse Units 
TO LET 


King H Co 

Chartered Surveyors 
1 Snow Hill , London, EC1 

01-236 3000 Telex 885485 

Bmuiogham - EdinbiujEt- Leeds* Manchester- Brussel* 


I 


Interchange Park 

PORTSMOUTH 

A NEW INDUSTRIAL DEVELOPMENT 




i.'-a* 


// 


fii 


Warehouses 

To Let 


!c Ff 


Unrtl 5 ? 700 sqft 


(Under construction) 

*U*IS IPTOIOQCXJOSQFLCAN BE BUHJTOTEMANTS REQUffSHENTS* 




535 


■ (Ric 

ERCfALi'.'' 1 - ca 


Richard Ellis 

Survewra 


I COMMERCIAL 

frlflfirwanSir&M. 

Propauesud. ronsmcuinpoi /RT. UwKtonWixaxj i 

V Telephone: (0705) 824421 Telephone: 01*408 0929/ 




RING John Case 
Chief Estates Surveyor 

FREEFONE 4321 

(24hrs) 


j- 


b 


v-- 1 —— --- — >— 






Financ ial Times Frida}’ July 9 19S2 


'“Willett 


CAPITAL 

appreciation 

Lon# Lamhokf inviatmtnt 
For Sale 

■ «4 CHELSEA PLATS 

R( which 

31 Ground Rant UndsrlwtM. 
h«v« only 21 years to run 
HEAD LEASES isarast 60 
ynara unmpirod 

PRICE £445,000 


01 '•730 3435 


200FT. FRONTAGE TO 
N. CIRCULAR ROAD. NU 
11.175 SQ. FT. 
GARAGE/SHOWROOM 
PLUS SITE 

FOR SALE - SUITABLE 
REDEVELOPMENT/ 
REFURBISHMENT/DI Y 

Subject to . planning 


mellersm oiUMHnruci 

&HAROINB 

On*MlLe(M mn^vo 


EXCELLENT 
OFFICE SPACE 
Approx. 6.000 sq. ft. 

£4 per sq. ft, 

Holbom area 

* lift 

★ CENTRAL HEATING 
★ CARPETED. 
TELEPHONE: 

01-952 3852 


£1.45 SQ. FT. NEW LEASE 
fi MONTHS RENT FREE 

LUTON FACTORY 

10.675 SQ. FT. 
inc. 1 JS00 offices 
IMMEDIATE POSSESSION 

MELLERSH S HARDING 
01-473 6141 
GLEN 15 TER GREEN 
Luton 20541 


: undeblarid,' in the-heart.' of the City 

almcsr 18, O0Osq.fi to let«. will six floors be satisfactory H.0.?_ 
excellent just wfiatl was going to suggest Well 
w course it wilt be air^conditioned^and earpeted throughout. ■ 
To the highest standards H.0. it goes without saying. 

■ ; No Sir, I realise what you require are dignified and 

traditional .City offices. And that is just what our 
architeds have achieved by retaining the 
outer sbeH of a fine old building. Not that they 
haven't' added a most impressive new 
entrance, and completely restructured 
the . intenor to' include two lifts and 


ABERDEEN 

EAST TULLOS INDUSTRIAL ESTATE 
12.46 ACRES FREEHOLD LAND 

★ Only one mile city centre and harbour 

★ 180,000 sq. ft. warehouse/industrial facility 

★ For occupation or redevelopment 

For Sale Freehold or To Let Joint Selling Agents: 


F.G.Bumett 

Chartered Surveyors, Vainers & Estate Agents 
33 ALBYN PLACE. ABERDEEN AB9 8SA 
0224 572661 


Surveyors. Valuers & Estate Agents 
27 ALBEMARLE STREET 
LONDON WIN 3FA 01-402 1607 


Royal Agricultural Hall 

Islington. 

215,000 sq ft of Offices 


Alongside the Interior Design TYade Centre* 
to be housed inside this historicbuildrrig l 'will be 
315,000 sq ft gross of new offices. 

Detailed planning andGLC consents have been g^ren 
and possession is envisaged in 1984/5 subject 
to requirements. 

Full specification, on site parking and facility for • 
considerable subdivision if required 



Sole Agents 


READING 

PRESTIGE NEW 
INDUSTRIAL DEVELOPMENT 

23,600 SQ. FT. 

IDEALLY SUITED TO 
HIGH TECHNOLOGY 

ORIENTATED USER 

sfc Reflective glass 
to office elevations 

* High office content 

# Superb specification 
^Self-contained site 

Completion June 1982 

All enquiries to Sole Agents: 


Consultant Surveyors [$ ■ 

9 Caste Street 

Reading RG17SB VjlDSOll 

0734 m 



Lambert Smith 


El ey 


■JA Trtrrlxmm JXlltSi Mrt 7 /KV 9 


HASLEMERE 

DELIGHTFUL COUNTRY TOWN 
yet -only 49 minutes London by fait train 
SUPERB NEW AIR-CONDITIONED 

OFFICES— 8850 sq. ft. 

ADJOINING STATION 

NO LOCAL USER RESTRICTION 
Private parking Energy cornerman dwi^n 




7, HARLEY 5TREET, LONDON WIN IDA 01-580 9357 


New factory/ 


Warehouse units 


SOUTH EAST HERTS 

■ 

frtwi3^sq.flupwanfe PDRSALE/TDLET 
ps^lassrs can retain industrial bedding allowances 

A Phoenix Bea rd 

- m 2 Chandos Street, Cavendish Square 
UmttehWIMOEH 01*3234681 


JOHN D WOOD 


CITY OF LONDON 
FREEHOLD OFFICE INVESTMENT 


NORWICH 

FREEHOLD GROUND RENTS 


OBAN 

FREEHOLD OFFICE INVESTMENT 


HEREFORDSHIRE 

1,744 ACRES (404 LET) COMMERCIAL FARM 
The above assets of a farming and property company 
which is for sale 
JOHN D. WOTJD 

23 BERKELEY SQUARE. LONDON WIN 6.VL 
TEL. 01-629 9050 (Ref. DEG/ROLA) 


R A. BENNETT 
& PARTNERS 


29 SHEEP STREET 
CIRENCESTER 
TEL. D2K5 5033 


Hy direction of British Steel Corp. 

LLANGATTOCK PARK 
CRICKHOWELL, POWYS 

Standing in H acres of National Park 

CONFERENCE 
& TRAINING CENTRE 

34,000 SQ.FT. APPROX. 
FREEHOLD FOR SALE 

Suitable for variety of alternative uses. 


Hillier Parker 

Mnj' * Rawdra ■ 


77 GRQ5VENOR STREET. LONDON W1A2BT, 01-6297666 


. ■' , .i-V -V 





pniisn oieei yorporaiipR^ ^ 



; \'v,' '4 • 

/y. •• 

it - vV- 

■■ ij-. r. i .V.“ J - ■ 

" --jy , r . > ' 






"t.-fJ .'-’■■•j 






w 


92 , 000 sq ft on a 60 acre site 


X^7 


Weatherall 
Green & Smith 

22 Chancery Lane London WC2A1LT 

01-405 6944 


Storey Sons 
&Rarter 

109 Albert Road Middlesbrough 

248301 


<.'*• L'. _1 ' V6;' i' 

-■ o : • 


' -r V . • * <- 




Queen Square WC1 
Period 

Office Building 
13,000 sq.ft. approx. 


Self-contained headquarters building 
50,000 to 93,600 square feet approx 

TO BE LET 

• Town centre location • All modem 
amenities • Rxtenshe car parking 

Edward 

Erdman 

6 Grasvenor Street, London W 1 XOAD 01-6298191 


NORTH CIRCULAR ROAD 

STAPLES CORNER 

26,000 SQ.FT. WAREHOUSE 

Just yards from J1 of the Ml • High Office Content 
25ft. to eaves • Heating & Lighting 

AVAILABLE NOW TO LET 


SHEPHERDS I Bertiand Thorpe I 

Oun«*Jtwvry« • ? KidParL-iK!! • . - I I 



Freehold for sale 
with 

vacant possession 



Sole Agents 


0271 


01-834 6890 



Estate House, 130 Jermyn Street, London SWlY4ULTe!e/. 267 761 . 


FREEHOLD or TO LET 

NEW SELF CONTAINED 

FACT 0 RY/WA 3 EH 0 IISE 

Immediately available 

10,600 sq. ft. 

WANDSWORTH BRIDGE, LONDON, S.W.11 

Sandler, Galloway & Co. 

10» Gees Court, Wigmore Street, London, W1M5HQ 
01-493 1357 


Gooch". 
Wagstaff • 

01-629 8814 



3,918 sqft\V^«- 
Offices incli$in 

374EUST0NRD' 
6,693 sq ft 
Prominent Showroom 


Tete5?^^4%^T. : .^?' :cv ? i 

> . :7 ^4 - -i 

Denver- 






















Financial Times Friday July. 9,1982 


SOUTHSEDE 

VICTORIA STREET S.WL 

7516 sqJL 

Self Contained Offices 

LEASE 

tobeasa^ned 

£15. sq.ft. 

H Johnson, Wright & Farmers I 

II LUDGATECIRCUS LONDON ECM7LQ I 
Telephone: 01*236 8816 ( 


Debenhnm Tewson 
& Chinnocks 

C •:*’ '-. w S. 

-- £* • "e-: :*■*: £ 

01-4081161 


Gayton House 
2 Gayton Road 
Harrow 

3,000 sq ft— 10,333 sq ft 
Modem self-contained offices 
comprising 2nd, 3rd and 4th floors 
in town centre location 

Available for immediate occupation 

To be let 




BOOTH HOUSE 

OFFICES TO LET in 
New Development 
4500 sq ft or 9000 sq ft 

All amenities including CAR PARKING 

APPLY JOINT AGENTS 

* ► HENRY 
f •! BUTCHER 

LEOPOLD FARMER 
Brownlow House. 50/51 High Holbom 
London WC1V6EG Tel:01-405 8411 

r (jwp |p W jc 16 STRATTON STREn* 
rnarlnSre MAYFAIR 

l--f Paiiners LONDON W1X5FD 
01 4991001' 




King Street EC2 

New offices to Let 

(whole 4th floor) 3. year ter m 

2,766 Sq Ft Approx 

Details: Commercial Dept, London 


Tel: 01-242 3127/0998 

(01/ 1 7634/ JS) 


£ Lincoln's Inn Fields, London WC2A 3DB 
Telephone: 01-242 3121/0998 


Telex: 27444 


WEST SUSSEX — Near Horsham 
MD3 4 miles. Giirwicfc Airport 9 miles 

AN OUTSTANDING MODERN TRAINING COLLEGE 
WITH A QUEEN ANNE HOUSE 

Trammer Collcqa equipped in a high standard with Assembly Hall/ 
Gymnasium. 4 Lecture Halls, Domestic Offices. 32 Bedrooms, 4 Bathrooms. 
4 Shower; Wash Rooms, 2 Staff Flats. Medical Room. 

Otl Fired Central Heating. 

House with 4 Reception Rooms, 5 Principal Bedrooms. 2 Bathrooms, 
3 Further Bud rooms and Bathroom. OH Fired Central Heating. 

2 Doublo Garages. 

Caretaker's Cottage with 4 Bed roomed Annexe. 

Attractive Guidons and Grounds. Swimming Pool. Car Park 50 care, 

IN ALL ABOUT 7 ACRES 

FREEHOLD FOR SALE WITH VACANT POSSESSION 
f Subject to Service Occupancies } 

Apply:— 

WELLER EGGAR JOHN O. WOOD 

31 Carfax or 23 Bnrkoloy Square 

Horsham London W1X 6AL 

West Sussex RH12 1EE 01-629 8050 

0403 63311 Ref: DCM/PDCE 


WEMBLEY 

MODERN PRESTIGE 
HEADQUARTERS 

WAREHOUSE BUILDING 

12,200 sq. ft. OFFICES 
28,000 sq. ft. WAREHOUSE 




Tet. 01-834 8454 

panpiii 

56/62 WJion Road. London SW1 V 1 DH 

ROYAL BOROUGH OF KENSINGTON & CHELSEA 

5 PRIME SITES AVAILABLE 

(BOLTON GARDENS «t al) 

Properties now used as a hostel group 
Admirably suited for conversion to luxury flats 
For further details contact: 

01-373 6933; 01-878 1340 


COMMERCIAL AND INDUSTRIAL PROPERTY 
APPEARS EVERY FRIDAY. THE RATE IS 
£27.50 PER SIN6LE COLUMN CENTIMETRE 


Cluttons 


AVON/WILTSHIRE 
NEAR RATH 

Bath 3 miles 
Chippenham 9 miles 
M4 9 miles 

Substantial well maintained 
mainly 18th Century House in 
attractive Village position. At 
present residential school but 
suitable for nursing home, hotel 
and other commercial/residentia! 
use. Main School Building. Class- 
rooms, Staff accommodation. 
Gymnasium, Headmaster's Cot- 
tage. About 8,500 sq ft. Fully 
modernised: Oil Central Heating. 
Separate Coach House converted 

to 2 Cottages. ABOUT 2 ACRES. 

FOR SALE BY PRIVATE 
TREATY AS A WHOLE OR 
IN 2 LOTS 

Details from: 

9 Edgar Buildings. Giorff Stroat 
Bath BA1 2EE J Tel: 0225 64814 ■ 


DE G ROOT 

COLLIS 1 


HOLBORN 

Modem. 

Industrial 

Building 

17,000 sq.fL 

•LoadingBay 
•GckxIs & Passenger Lift 
•Central Heating 
• Excel lent Condition 
TO LET AT £1-50 psf or 
FOR SALE FREEHOLD 
AT £5251)00 


DEPARTMENTAL 
STORE CENTRE 
GLASGOW 

45,000 SQ. FT. TRADING 
SPACE FOR SALE 
AS A GOING CONCERN 

Enquiries invited from 
principals only: 

Bos 75723. Financial Times 
10 Cannon Street. London EC4P 4BY 


FOR SALE 

North West Industrial Development 
Potential Income of £125,000 p.a. 
For Details please contact 

The Hamilton GeefiirtnmJup 
L. TeL 0942 33836 a 


ISLE OF WIGHT 

FOR SALE DUE TO 
OWNER'S RETIREMENT 
PROPERTY HIGH STREET 
COASTAL TOWN 
Lease 900 years. Present Shop 
65fi Frontage. Could convert to 
three Shops/th me Flats 
Mortgage available 
Write Box T5725. Financial Tima a 
10 Cannon Street. EC4P 4BY 


BREATHTAKING BARBICAN 
Now complete. Tower flats to 
rent. Unfurnished. £4,500 to 
£24,000 pa. Company applica- 
tions welcome. 

Ring 01-628 4372 
or 01-588 8110 


FACTORIES AND 
WAREHOUSES 


SEYENQAKS 
NO PREMIUM 

Superb 7 year old laciory/warohouso 
approx. 5.000 sq It. Fully fitted with 
gas heating, burglar alarm, lighting, 
offices etc. Also mezzanine floor 
almost doubling effective area. 
Lease with approx. 19 years to run 
at £13.900 pa axel. No premium, 

fittings at presen i cost. 

Phono Ref. J.T. St Albenx 64337 


SHOPS AND 
OFFICES 


STAINES 

2,507 SQ FT RENOVATED 
PERIOD OFFICE BUILDING 
- FOR SALE OR TO LET 
Central position 
17 Car Parking spaces 
A. C. FROST & COMPANY 
Tel: Windsor (075351 54555 


FOR SALE 


GRE5SE STREET. W1 

FREEHOLD INDUSTRIAL/STUDIO 
BUILDING FOR SALE 
13.000 sq ft. PP to refurbish into 
15 xeir-contained units. Full Vp. 
£326.000 FREEHOLD 
Sola Agents: 

Robert Irving B Bums 
23/24 Margaret Street. W1 
Tel: 01407 0821 - Re*: HB 


LAND FOR SALE 

WORTHING, 

SUSSEX 

Land Building Permission 
7 Detached Houses 
Very Central 

Phone 0275 5095 evenings 


PROPERTY 

WANTED 


WANTED 

DIRECTORS DINING ROOM 
Owing to termination of lease, one 
or two director® dining rooms 
required to hold 10 u 25 people, 
in Maylair. 

Please reply to 
Box T5724. Financial Times 
10 Cannon Street. EC4P 48Y 


INTERNATIONAL PROPERTY 


7HERES NOTHING N 

THEW 


fA 

,.5f V 

v v. 


Yoifi oun 
priv; y at 
lakii j. Floe 
lived an yurt 

Look lawn. 
Card n on I 

Ther youi 
Com letefc 




, : 


Acompan 


atti^top 
needs an oiiice 
on the top 






gai 


Step nto th 
■door . Inlo 
begi ning ■ 

Man; ior 
vaul id 
spea oEgn 

Ever thing 
pecaualCi 
most expen 

In a i ity, bl 
seen in am 
bunc edso 
SL0p|lng3E 
ifieTirero 




'.V, 


•••• 


eg ' «r aa. 

n hi i ; ! 




atSMMudbPPA' 


New York Qcy* 

The new Continental 
jffli rob Center BoikHag 
4^00-10,000 sqJFL 
available for long or 
short term suNose OB 


the 40th floon 

Enjoy breathtaking, 
unobstructed views from 
the highest floor on 
which you will be able to 

lease divided office 
space. An excepdoarf 

pggr h niMing ins t alla tion 
will be included. 
Occupancy Fall 1982. 

Join ATT and IBM, 
just two blocks north, 
and OUT OWH TOStCT Of 

distinguished tenants. 

whidix include Midland 
Bank pic, Mitsubishi 
and Credit Industrie! e£ 
ComxnerdaL 

For particulars, call or 
write Me Jerry Richter, 
Y.R, Wm- A^White & 
Sons, 51 E. 42 Street, 

New York, N.Y.J0D17 
212-682-2300 


71S 

Ml 

Hob 


Fori 

iforin 

P.0.1 

tiMac 

ov52 

•RjtoBTBK 



l REAL ESTATE EVENT 



+:>TrLto\ipi:Ex - 1 (in huk.ki 

l.NM-:U’ULIS. MINNESOTA U <>( Sr IS. WS2. 

\0 ViiXiM! M BID RE QI. 'I RED 

;<Ri:.NTM.A_L AFriiTVISAf. Sl KSSO.UliU 


The Property 'lie . 
Curtis Hotel complex 


consLsts of nine fcuildir^s on tlie premises. Auc- 
of approximaid’j 58T tion will be restricted to 


The Audio n Wednesday, More Information A 
August JS. 1982. 11AAL ' conpa-hensKe inlbrma- 


is. Auc- tion and qualification 

of approximaieH 587 ’ tion will be restricted to package can be obtained 
hotel rooms. 38 note! qualified*. prc-regLst- by contacting Bruce ML 

rooms, 110 arivrnents cred j ftA V, bidders Cioldscein& Assoc, Inc 

and a 350 safin eking only jRjgjh. SOI I Hyatt MercbandLsc 

raiup. StRK^icgl y Mart 1300 Nicollet Mall, 

located, it is cun *ntK r jSjfflflB Minneapolis. MN 55-103 

functioning as ai si’s or immediatdy call 

Sale cmxluoted br Natioiiw le toaun n<iqni< -NUhnuJhwiJiiu'lliutt'l GoWscin & MoooiKs, Inc. Mdrin A. 

CJnec Aucttoaem soil lha M<rTdmdhc.\laii.r.VXJ\K»ll«>lafl^«iiincapolh, WI«inc«xa1S40A 


"T Dublin Corporation 


Multi-storey Car Park at 
Drury St./Lr. Stephen St., 
Dublin 2 

Extension of Time 

Notice is hereby given that the dosing dire for the 
receipt of offers for the development otf the Multi-Storey 
Car Park has been extended to 

12 NOON ON FRIDAY 27th AUGUST ,1982 
Offers must be submitted in a sealed envelope marked 
“Offer — Multi-Storey Car Park — 

Drury Street/Lower Stephen Street" toe 

The Assistant City Manager : 
Development Department, Exchange Buildings 
' Lord Edward Street, Dublin 2 


ENTERTAINMENT 

COMPLEX 






IbrSafebyTaoder 

Under instructions from. 


At. the firiiuieijil 
hubof Australia. 

550 Bouiise Street, 
Melbourne. 


Shell, BH7, National Bank, and 
many other important business names 
am all close neighbours of 550 Bourke 
Street, one of Aiitralia’S most 
important addresses. 

Previously the home of 
Australia’s most powerful 
conglomerate, 593 Bourke Street 
provides accomnlodation for the most 
fastidious commercial tenants. 

There are |2 office levels 
providing 697Girj? of air conditioned 
accommodation.] Th ere’s basement car 
parking for 56 cats and a folly- , 
equipped staff cafeteria. 

There's ahb great potential for 


devekjpment in a market that requires 
100,000m 3 of new office space every 
yean. 

Fpr a comprehensive brochure 
and details of tender please contact the 
sole agents, Richard Ellis Pty. Ltd., 

60 Collins Street, Melbourne, Victoria, 
3000. Telephone (+613) 6543333. 

Tenders dose July 16 Ul, 1982 

Richard Ellis 


Rkbnff EH* Ply. Ud„ 

ODGoEas Sttra, Udbome. Vmorfx, 3000. 

PImk (+613)6543333 


Huge, established tourist business in Sydney’s outskirts. 
Viable business freehold now a' household name. Excellent 
potential for further development which should ease I’.LRJB. 
Investment controls. 

Magnificent owner's mansion overlooks main business complex 
on 120 acres. 

Asking A$3.75 million. 

Farther details and colour brochure on request 
P. E. Coates, Investment Department 

BAINE & HORSE PTY. LTD. 

34 Hunter Street, Sydney, NSW, Australia 2000 
Telex: SYDELIS AA 22617 

i.i=;.os Home 


SAN ANTONIO - IBIZA 


A unique opportunity in aeqaixe a superb villa known as 


• CASADRACH • 


Srttulrri at 'Can Cerma, fUn Antonio Aba). JMsa, Tbh hnraritXJS 
Ibcan styled villa afters complete privacy being Huroundcd by uplii 
level icnacioR, nuwiiiicent wxnety and sea views. Built in 3 levels, 
the villi comprise a) 4 double bedroom* I L m suiiel an! I auqdc. 
fcjwcinus rcceptmn hall, superb lounge, elegant dining room and 
extensive fined kitchen. The whole ol the propat v is furnished in a 
u&tduJ srylc-AnijrvcIkrasoniilixjisvrtnimingpoulandbatbcquCJiea 
completes ibis wonderful locations 


Seilinf; pribe £160,000.00 OSLO. 

Apply to:— KN. Gnnsell, Town & CUy House, West Bro m wi ch . 
West Midlands B70 7LX, England. 

TcLOZI-Sl&I 7711. Telex; TCX.UD. 33S3R8 


FOR SALE 

ESTABLISHEE 

COTTON 

ENTERPRISE 

AUSTRALIA 

A substantial interest is avaiiab e 
in a lacge proven irrigatii n 
property in the north west if 
New South Wales growing « :- 
ton and other crops. Curre it 
expert management will co - 
tinue. 

Turnover is in th# order i f 
USS5 million per annum. Furthi r 
development with attendant tax 
advantages Is expected to Ii - 
crease sales by 100% over tne 
next four years. 

Additional iidormatkm will be 
provided to genuine enquirata. wht 
should contact: 

Mr J. R. BMdla 

C/O MANN JUDD & CO. 

Chartered Accountants 
Gold Saids Hones, 1 Alfred S treat 
Sydney, NSW 2000, Australia 
- Telex-. AA 24528 MANJUD 


MAGNIFICENT 

OPPORTUNITY 

to invest in . 
PRIME RESIDENTIAL 
LAND 

in Florida’s beautiful 
Ocala National Forest 

Only 40 phjts for sale. 

All main services- available. 
Total site area 60 acres. 
£5,000 per plot 


is Bsi ey ••St-'vct.'Lbv -C" ■•‘•i’- 1 - rrC-.i 


SWISS SHOPPING CENTRE . 

Parti ctps lion offered In profitable 
development ol now Shop, Office, 
Supermarket complex xo be built in 
the centre or ■ Monthey with first 
phase ready to start. Apply: 
WHITEHEADS INTERNATIONAL - 
154 London Road 
North End, Portsmouth 
' Tel: (0705) 688811 


OFFICE BLOCK 
FRANKFURT 

Modern building near main 
Station. 3,000. so m (division 
poosibfa). Monthly rent only 
DM 15.— h m = DM 45,000. 
Occupancy/oscurity toy 
agreement. 




PRIME CHICAGO 
RETAIL LOCATION 

3.000 m ft Victorian building lust 
Bans Off Michigan Avenue' on tushlon. 
able Oek strew. wUi additional land 
tor expansion, la GMeago’s too retail, 
hotel, restaurant and resWmtW era*. 
Contact: 

Dllon Rasul dk 
FULLER BROKERAGE 
12 S. LaSalle ShMb ChkOOO, IIL, 
UAA. 312-728-1500 



INVESTMENT & LAND 
DEVELOPMENTS 

Freehold land with pianntas oemilsslon 
A ojanned reudcntlal development* to 
southern Spain tor private or cor- 
porate Investment partklutton jjd‘ to 
a maximum of 50%. a mintewm. of 
£50.000 is reaulrea. mart term 1-3 
*2? J r * , . l !lP 9 Wsn •sterns compared 
with the UK property market. 

** W1X IDE 

Tell 01-439 9333 <34-%rc.) 


COSTA DEL SOL 

The only SHOP facing the port and the beach club 
left at PUERTO DE LA DUQUESA. This unique 
premises with terrace, facing three sides, is 
available for any commercial use. Price £49,000. 
20% finance available. . 

17 Montpelier ~Street,. London SW7 1HG 
Tel: 01-5S9 3400 Teles: 916087 


SWITZERLAND 

FOREIGNERS can buy 4 part manta Preahold on LAKE GENEVA, in Mon [re dm 
near lausanne.-or all yaar round resorts; Si Carqua near Gonavo, VHIors. 
Verbier. Las Diablareta, Leyam. etc. FINANCING fi0-70% AT LOW INTEREST 
RAtiES. Also quality nropa rtios in France: Apartments In EVIAN on ihs 
lake, approximately 35 minutes from Geneva, and luxurious villas -VERY 
NEAR THE -BORDER OP. GENEVA, built to your «p «BlReaUoM. MviaeTml 
preferred, write to: ... 

Developer, e/o GLOBE PLAN SA, Mon-Repos -*4,1005 bwsaww. Switzerland 
TeL (21) 323 5.12 - Telex: 2S18S me) is eh 


INVESTMENT IN REAL ESTATE 

op ggttwnldw in' the U.iAi in rMldmiaffcondbcnhiliim devetopments 
to Florida. PiwtksTOw avaitoble isetode.-untoee HwwtRwnl potmuSwi 
..^ c ^ 0ll>ci ? ent 0,1 Lyj®. to* ToTace* at Tnraoorrv ana The Four 
Ambassadors In prim areas ot Miami. Prices from $70,000 to 5300,000. 
Mortgaen available, In tg nc tta n tours with tree accommodation. 

Intomatlon from; 

Jam BH» 

TANA WIND {tJK} LTP. 

Ii lowtlwr Gardens, Priam Consort Road. London SW? 2AA 
Teh 01-MI- 1721 ' ewmlaeK 0306 0S2344 


FLORIDA. U. 33V . — Com mar lal dwrionetf 
Plate -on major htotrmyi. 70 *nmc» 
. a ?» % rad uring rat* ol Interest. 

‘ Raf * opoortunlty. 

«*«l Shannan. 4151 Alexandra 
Avniu#, Harrow, Middx, 01-568 1223. 


F "5'J?A CSMT RE-— CompM* advisory 
,«tolte«oo. Open 
Hglldarfc- •lO.ofr 

yn. 01-439 2626 or Q1-434 5SZB.- 


T’ " 


l. 




















I 


u-; 




"'\ 


Vftv 


"‘ ■•a 


’•Hv 


ie 


.;. Fmahcial Times' Friday July. 9 1982 

CoMpanlfis and Markets 


29 


COMMODITIES AND AGRICULTURE 


Russia may 
buy less 
sugar 

Bjf Our Commodities Staff 

SOVIET sugar imports from the 
free market could fail to an 
average of 3.7m tonnes per year 
{*£ remaining' years of the 
19S0*S5 five year £bn according 
to Mr Helmut Ahfleti of sugar 
market analysts F. 6. LJcJrt, 
speaking in London yesterday. 

Addressing a conference on 
the Soviet Union and the 1 
'world's commodity - markets, Mr 
Ahfled said that this figure* 
down 1.2m on the estimated 
imports for 198L- could mesa 
that short of disasters to- the 
Cuban crop Russian demand for 
free market supplies would be 
small. 

Production of beet sugar in 
the Soviet Union was estimated 
as ranging from 7.7 to 9 An 
tonnes, white value, over the 
next four years. Consumption 
was forecast as reaching L2.3m 
tonnes by 1985. 

Call for end 
to palm oil 
export ban 

KUALA. LUMPUR — Malay- 
sian oil palm growers in' the 
peninsular states will ask the 
government to lift a three- 
month export ban ' on Crude 
Palm Oil (CPO) imposed an late 
April. 

The president of the West 
Malaysian Oil Palm Growers 
Association (WMOPGA), J. C. 
Chang, said & memorandum 
will be submitted to the gov- 
ernment which will also ask 
for the removal of other Testrio-. 
lions, like the selective grant- 
ing of .refinery licences. 

He -said the restrictions hind- 
er the development of a- free- 
trade system, tended to encour- 
age inefficiency among oil-palm 
refiners and were detrimental 
to oil palm growers, particu- 
larly the medium-scale opera- 
tor. 

Deputy trade and industry 
minister Shahrir Abdul Saraad 
said in announcing the ban — 
confined to the Peninsular 
states— that it was necessary, 
to meet Shortages faced by the 
local refiners. . 

Reuter 


UK poultry ban ‘illegal’ 
says top EEC lawyer 


BY LARRY KLTMGBt IN BRUSSELS 


BRITAIN’S emergency- health 
regulations . that have resulted 
in an effective ban on poultry 
imports from mprft of the EEC, 
particularly France, have been 
declared illegal in an advocate- 
general’s opinion handed down 
at the European Court in 
Luxembourg. 

Advocate-General Sig Fran- 
cesco Capotorti says that the 
British measures, were “ insep- 
arably connected with prevent- 
ing imports ”, and constituted 
both “ arbitrary disrahninataon M 

and “ a disguised ' restrictionon 

-trade*’ .in-.breatfi of European 
Community Saw.” 

While the Court Itself is yet 
to hand down its formal judg- 
ment, a ruling which is now 
■expected next week, an advo- 
cate-general’s opinion is more 
often than not endorsed with- 
out significant change. 

British . officials in London, 
while expressing disappoint- 
ment - that - their defense 
appeared in danger of being re- 
jected, said they were stifi 
awaiting receipt of Sig Capo- - 
-torti's - opinion and therefore 
could -. ho.t comment in any 
detail. 


The European Commission, 
following complaints from sev- 
eral EEC member-states that 
the measures were unnecessary 
on health grounds and designed 
amply to protect UK farmers 
from cheaper imports, went to 
the Court in November after 
Britain refused to remove the 
bah. 

Following widespread pro- 
tests by British farm workers 
churning that their jobs were 
being endangered by an ex- 
pected surge of unfairly sub- 
sidised turkey exports from 
France, Britain reintroduced is 
September a compulsory 
slaughter policy to deal with 
any fixture- outbreaks of New- 
castle disease, a viral infection 
more generally known as fowl- 
pest. . 

Imports were only to be 
accepted from countries which 
were free- of the disease and 
operated: a slaughter policy, a 
move -wbicfa banned Imports 
from countries using the wide- 
spread vaccination system. 

. $ig Capotorti said that the 
ban . affected seven EEC coun- 
tries and interrupted a flow of 


exports from France alone 
which were worth an estimated. 
4.8m ECUs at 1B80 rates (about 
£2.7m at current rates}. 

However, the measures were 
not justified on health grounds. 
Even the UK Review Panel set 
up after an epidemic in 1970-71 
had found that vaccination was' 
the essential ingredient in 
effective control. The UK was 
also unable to show that there 
were any signs of another im- 
pending epidemic, nor could it 
spell out in detail the iikely 
effects a new outbreak would 
have under current arrange- 
ments. 

the restrictions on Intra- 
Community trade, Sig Capotorti 
said, “ were in no sense neces- 
sary, but rather were excessive 
with respect to the desired 
result, which was to ensure the 
success of the system intended.” 

Britain had flouted the 
“ principle, of proportionality,” 
which, one legaj expert said 
yesterday, was another way of 
saying that the UK was effec- 
tively using a sledgehammer to 
crack an egg. 


U.S. loses Soviet grain sales 


BY NANCY DUNNE IN WASHINGTON 


WITH the U.S. Government 
worried . about finding storage 
facilities for surplus grains and 
another bumper crop on the 
way. American ■ agriculture 
officials in Moscow have 
released a Teport -illustrating 
tbe drastic. ' decline ' of the 
American share of the Soviet 
agriculture import market. 

Before the 1980 embargo 
imposed by President Jimmy 
Carter, U.S. grains composed 
68.6 per cent of USSR imports. 
Last year that figure dropped 
to 22.9. per cent while the 
Canadian and Argentine shares 
rose dramatically. 

From a 6.4 per cent share of 
the Soviet grains market in 
1979, the Argentines had 
captured 35.6 per cent of the 
market last year. Canada’s 
share rose from 13-4 per cent 


in 1979 to 23.7 per cent in 1981. 

'.The .UB. Department of 
Agriculture expects to sell 
almost $3bn-worth of grain to 
the Soviets this year. More than 
in 1979, but still a decreased 
portion of the market. 

However, it is being reported 
here that the incoming secre- 
tary- of state/ Mr George Shultz, 
is strongly in favour of negotiat- 
ing a. new -long-term agreement 
on grains between the two. 
superpowers.' * 

Mr Shultz, who was instru- 
mental in negotiating the first 
LTA in -the mid-1970s, has 
reportedly told . Senator Larry. 
Pressler that he is much more 
favourable than Alexander Haig 
towards a new pact. He is said 
to have suggested two separate 
systems for - trading- with the 
Communist nations— one for the . 


Soviets and one for the 
satelites. ' 

In London meanwhile, Soviet 
grain imports were forecast to 
continue heavy during the 
1980s by International Wheat 
Council (IWC) executive secre- 
tary Jean Parotte. But he said 
they would probably be lower 
than in the last two years. 

He told a conference on- the 
USSR and the world commodity 
markets that Soviet stocks must 
have been drawn down sub- 
stantially in the last two to 
three years and would need 
replenishing. 

The rapid upward trend in 
Soviet grain imports in the 
1970s would almost certainly 
slow down, however, since there 
was bound to be some -improve- 
ment . in Soviet productivity, 
Mr Parotte said. 


Coffee 
export 
quotas cut 
again 

By Our Commodities Staff 

THE International Coffee 
Organisation (ICO) yesterday 
ordered the second cut this 
year in export quotas for its 
producer members. The 1m 
bag cut reduces to I3Jfcua bags 
the total exports under the 
ICO quota scheme for the 
July-September period of this 
year, and to 5K2m bags the 
1981/2 annual total 

ICO officials ordered the cut 
after the organisation’s 15-day 
average price fell below the 
120 cents per pound level set 
by its coundL A similar cut 
was made In the previous 
quarter and officials say that 
if the 15-day average price 
falls below $1.15 per pound 
later this month then a further 
cut tn. exports would be made. 

The ICO indicator price 
yesterday stood at 119.99 cents 
per pound. 

World coffee prices firmed 
on news with the Septem- 
ber position on the London 
futures market reaching 
£1,130 per tonne at one point. 
In later trading, however, the 
price fell back, to close at 
£14.07.5 per tonne, down £3 
on the previous day’s level. 

India rubber 
import curb 
sought 

NEW DELHI — Members of 
the Indian Rubber Growers' 
Association have asked Com- 
merce Minister Shivraj Patti to 
ensure tbat rubber imports in 
1982/83 (April/March) should 
not exreed tbe targetted 30,000 
tonnes. • 

The Association's secretary, 
Mr Joseph Momppally said 
imports beyond this amount 
would depress domestic prices 
and hit growers. 

Expected domestic output of. 
176,000 tonnes in' the current 
year could me£t the present 
needs of rubber industries, he 
added. 


FARMER’S VIEWPOINT 


Young talent stifled 


VJTTH THE death last week of 
Tom Parker, .Hampshire has lost 
one of its best and most colour- 
ful characters. He was 86 and 
his farming, which started just 
after the 1921 slump, saw him 
survive the whole of the inter- 
war period, and build up a 
spectacularly successful, farming 
business. 

His success was founded on a 
thorough grounding in practical 
fanning— he was under-plough- 
man to his father— natural 
shrewdness and a capacity for 
taking immense pains with his 
farming and, as he was always 
ready to admit the good for- 
tune to have been in the right 
place at the right time. 

It’s worth examining how It 
was possible for him and many 
others to become so weH estab- 
lished. when to-day entry into 
farming has been termed impos- 
-sible for all but the favoured 
few. Even so. the fanning coir 
leges are turning out masses of 
young people who have no pos- 
sible chance of ever farming in 
their owi right 

The reason for the compara- 
tive ease of starting fanning in 
the inter-war years was that few 
other people had the inclina- 
tion to embark on a career in 
an industry of which parts such 
as cereal growing, were almost 
bankrupt and the remainder 
not much better. There were 
farms to rent in some areas rent 
free; there were also farms to 
buy and money was cheap. Tra- 
ditional arable farming, except 
on the veiy best of land, was a 
certain recipe for loss and those 
who succeeded in those areas 
milked cows, fed on imported 
grain. 

Death duties had forced the 
breakup of many estates and 
this too let in young farmers 
who had no other assets than 
confidence and a strong back. 
Intelligent farmers* sons went 
into banks or the professions. 

You didn’t even need a great 
deal of money to. get started 
then. Banks were always very 
cautious .lenders and there are 
still tales of some of the most 
successful farming tycoons of 
the period, who changed banks 
because they had been denied 
an overdraft of £100 or so. 
Some farmers I knew in those 
days would have had the 
greatest difficulty in covering 
and the annual balance sheets 


their liabilities with their assets 
the banks used to demand were 
often an exercise in imaginary 
statistics 

Bankers used to set a great 
store by what they saw as 
character, both of the farmer 
and his wife. One well known 
country manager used to judge 
a man’s survival by the home- 
malting and -hard working quali- 
ties of his wife. No extension 
of credit was ever granted until 
he had been there to tea, so as 
to be able to make bis judg- 
ments on the spot. 

Tins was carried to extra- 
ordinary lengths. 2 even heard 
of one girl who blighted her 
husband's chances of expansion 
capital because she bought the 
household’s bread instead of 
baking it herself.- - 

But akhougb times were hard 
and it was impossible to see a 
successful financial ending -to 
any .farming year, it was a very 
enjoyable time to be farming. 
Some went to the wall, but 
■these were largely I fear the 
original landowners and farmers 
who could not adapt their sys- 
tems to the economics of the 
day. 

Not that we called them 
economics! Nor did we indulge 
in tbe modern jargons of 
accountancy. I never heard the 
term cash flow — there was so 
little of it to flow anyway. The 
terms of money were real 
indeed whatever the state of 
inflation or deflation. Income 
tax was assessed on an acreage 
basis. Budgeting was something 
best forgotten as one surviving 
farmer told me, because every 
single farming operation if 
costed out showed a loss. Its 
true, it did! ' 

What are the young man’s 
chances of following in Tom 


Parker’s footsteps today. Abso- 
lutely nil — unless his father 
or a near relative has a farm 
which he can pass over to him 
free of too much Capital Trans- 
fer tax. Even having a goodly 
competence would not be 
sufficient to stock a farm. The 
cost of live and deadstock 
means that to start from 
scratch could require anything 
up to £1.000 an acre of tenant’s 
capital. 

Decent workable arable land 
costs from £1,500 to £2,000 or 
more an acre. British land is 
now the most expensive in 
Europe, and probably- in the 
world, as it is the only country 
where there is an absolutely 
free market in land together 
with guaranteed output prices. 
Institutional and other inves- 
tors have determined that it 
is the safest hedge against 
inflation, now that gold is on 
the slide. 

Some critics say that the 
security given to tenants and 
their families is fossilising the 
structure of farming. But if 
this were to be' abolished it 
would still leave the occupation 
of land to those with the 
longest purse, probably the 
institutions, or the vers- rich. 

If these critics sincerely 
wish to open the farming 
ladder to worthy young 
entrants they should clamour 
for a doubling of CTT without 
any chance of evasion and for 
withdrawal from the EEC. 
This would bring prices down 
to world levels and repeat the 
situation in 1921 when the 
government or the day. a Con- 
servative/Liberal one. pulled 
the rug from under the indus- 
try. it is, I think, the onjy 
answer. 

John Cherrmgtot*- 


Chinese demand lifts copper 


CHINESE copper purchases 
over recent weeks were believed 
to have totalled around 50,000 
tonnes, according to London 
traders, with possibly around 
20,000 tonnes of this due to be 
shipped from London Metal 
E x change warehouses later this 
month. 

Overseas reports that further 
large tonnages, up to 150,000 
tonnes, are still required by 
China could not be confirmed. 


This is the first time in three 
or four years that China has 
been in the market for such 
large amounts and it comes 
during a very slack period of 
industrial demand when exten- 
sive cutbacks by North Ameri- 
can producers have failed to 
make any significant impact 
The Chinese purchases have, 
helped LME prices to rally over 
recent days. Yesterday cash' 
copper closed up £11 at £796.5 


1 


w 


LONDON OIL 
SPOT PRICES 


ICh&ngc 
lateat H- or — 


CRUDE OIL— FOB IS par- barrel) 
Arabian Usht....,...gI.60-32.1B:--0.0S 

Iranian Ught..~......31.0aSl.H>M>.2a 

“Arabian Heavy |2».&0-8».76i +0,05 

African (Bonny U'MWao^WM.OS 


PRODUCTS— North Wait Europe 

Ctf(f PBrtonn* 

Pramluma*aollnB...|548-545 1 — 

Or* oil 1869-277. ;-1.5 

Heavy fuel oil .,164-153 j-i JB> 


GAS OIL FUTURES 

little movement wee seen aa many 
traders awaited lower levels, reports 
Premier Men. 


BRITISH COMMODITY MARKET 

BASE METALS 


SUJS. 


per tonne: 

874.50 1.50276.66-7*^6 

-0.602M.BO.7L0a 
Uo .50780.76-73. 00 
-0.60184.00-82-60 
I-L6OL60 
1—0.60(286.66-86 .76 
i-l.BOi288.OB 


July,.. 

AURUet ...... 879.00 

«tetw.w..A' 8B0-.Q0 

Oct. J 883.00 

Nov„ j "884.50 

Dm 886.00 

Jan 888.00 

Fab-*....-. *90.00 J-8-6BSB0.W 

March.,—, 891.00 (-4.00,231^0 


Bane metal prices gained further 
ground on the London Metal Exchange. 
Copper touched £BTB. boosted by short 
covering and the initial wrong-dr of 
Co max, before • profit- taking pared the 

S riee to £807.6 at the do* a. Lead was 
nelly £330. after £334.5 and Zinc 
£421-5. alter £434. the fatter following 
another U.S. producer price rise to 
40. cants. Aluminium dosed at ES72 
£3.010 respectively while Tin traded 
quietly prior to ending at £8,780. 


COFFER i 


f mn. 1 + oH pirn. ,+ or 
i Official - Unofficial! -t 


Turnover, 1,047 {1,185) 
tonnes. 


lam «t 100 


3 mthej 809-10 (+4.751 


GOLD MARKETS 

Gold rose 37} to $314315 in 
the London bullion market 
yesterday. It opened at 9310311, 
and was fixed at $310.85 in the 
morning, and $313.50 in the 
afternoon. The metal fell to a 
low of $3093-310}, and touched a 
peak qf $3144-315. 

In Paris the 124 kilo Enid bar 
was fixed at FFr 68,900 per kilo 
($307.77 per ounce) in the after- 
noon, compared with FFr 68,900 
($307.25) in the morning, and 
FFr 6EU50 ($304.58) Wednesday 
afternoon. 

' -In Frankfurt the 124' kilo bar 
was fixed at PH 22*200 per kilo 
($312.28 per ounce), against 
DM 24,965 ($308.75), and closed 


Settlemt 
Cathodea 
Cash ....... 

3 months 
Sattlemt 
UA Prod. 


792-4 


MJ 


794 U-7 
177-9 |+4J 


796-7 rf 11 
812.5-3 |+9 

j H*«r» 


at $3134-814*. 

In Luxembourg the 12} kilo 
bar was fixed at tbe equivalent 
of $310-30 per ounce. 

In Zurich gold finished at 
$313^314. 

LONDON FUTURES 


Month 


lYesf rdsy** 4-W | Buiinass 
closa — j Dona _ 


August— 
Saprfmb' r 

October... : 


C par troy [ 
i ounce ( ; 

186.OO-5_5O!+5.S6O'1M.40-W5 
!l86.50-6.7ar+3.5M! — - 

occotmr... -187 .50-8 JO +2.876) 186. <0-6.00 
November! 1 89.35-9.30'-+ 5.026! 1 89.66-8 JB 
December 19T, 10- 1^0^2.860, 18 1JS-8M 
January~..:192.00-g.70^2JZ60 J :182.70-l.W 
Turnover; *419 {323) ion of 100 uoy 
ounce! - 


777-9 44.5! 780-8 ;+B 
795-7 W-6.2Sj 798-800 +6 

779 +5 1 — 

— . !*68-70-7&J 

Amalgamated Mertaf Tradmg 'reported 
that m the morning cub higher grade 
traded at £800.00, 795. OC. 84.00, 33.00. 
94.00: Three months £814.00, 12.00. 

13.00. - *4.00, 15.00, 14.00, 13.00, 13.50. 

14.00. 13.00. 13.90, 13.00. 10.00. 09.00, 

06.00. 09.00. Kerb: Higher grads: Three 
months £808.00, 10.00. 10.90, 1000, 
09-50. 10.00. Afterneon: Higher grade, 
three months £815-00. 14.00, 13.00. 
12.50, 12.00, 12.50. 13.00. 12.50. 12.00, 
13X0, 12.50. Kerb: Higher grads three 
month* £810.00. OS to. 08.00, 07.00. 

06.00. 06.50. 08.00, 07.SD, 08.00, 09.00, 

08.00. 08.5a 06X0. 06.00, 07.50. Turn- 
over 3.8300 tonnes. 


TIN 

o-m. ;+or i p.m. 
Official , — ;Unofflolal 

+or 

-t 

High Oroc 
Cub.. — i 
3 months 
Sattlemt 

Ie £ 1 £ j £ 

6870-5 '+IB 8680-78 
6795-800 -7 J 67 90- BOO 
! 6670 • +1B ; — j 

£ 

UlSLS 

—55 


levels were: spot 573.5c, up 20.4c- 
three-month 594.9c. up 20.4c: six-month 
816.2m. up 20.4c; and 12-month 660.8=, 
up 20.2c. The metal opened at 332- 
Jl 

SILVER i BulOon + or -for 

P«r : fixing ; — • p. m „ : _ 
troy to. . price ; Unoffie'i 

lP0t-j~.-335.10p -rl1.5~543.7p +Ujj 
3 moflttta.544.80p +11J 353.5p ,+iai 
6 months.354.05p * 11.1 — ; 

^ months 374.8Op_+l0J _ — 

LME— Turnover: 191 ~ (112) lots of 
.“if - . Morning: Three months 
Kerb: Three months 
345.5. Afternoon: Three months 5ffi.O. 

53-5- Kerb: Three months 353.5. 
55.0, 5BO. 53.5, 53X1, 53.5. 

COCOA 

Yesterday's 

COCOA 1 Close + or Business 
| — Cone 

£ per ton ne 

July. 882-B3 — 22.0 - 892-8f 

Sept. — 919-20 -23.0 934-17 

Dec ........... 960-61 —28.5' 972-58 

March 996-97 — 20.0 1006-SS4 

May 1019-20 -16.0 1022- IB 

July.........„.i 1039-41 -16.0 - 

Sept ........... 1058- 59_ r JB.5 1 060 - 59 

Seies: 1,927 (1,796) lots of 10 tonnes. 
ICCO — Daily prse for July 8: 72.04 
(74.10). Indicator price for July S: 
73.57 (73J8Z). 

COFFEE 

Continued short covering raised 
prices during s steady opening, 
reports Oraxal Burnham Lam ban. The 
expected ICO quota reduction had a 
short-lived impact which was 


Physical closing prices (buyers) 
were: Spot 48.50p (same); Aug 51 JSp 
(51.50P); 51.25p Sept 51.25p (51 top). 

SOYABEAN MEAL 

The market opened slightly higher 
■n nearby months and easier in 
distents, reports T. G. fioddick. Shore. 
, covering and commercial interest in 
i near positions kept prices steady. 


PRICE CHANGES 

In tonnes unles otherwise stated. 


AMERICAN MARKETS 


!Ynsterdy> : + or] 

i i ~ ! 

Business 

Dane 


i * j 

iper tonne' 


August,.... 

October... 

.,! 128JU-2B.7+1.15' 12G.Bfl-25.B0 
128J20-2B.3 +0.8IH 1Z8J2B-2fl.OO 
... 152.50-52.5 — 1 112.76-32-40 

Feb 

135.50-56.0 —0.4H 


April 

1 , i 



July 7 
1989 

+ or 

Month 

■go 

Metals 

Aluminium ...... 



£810/816 

|930|960 +5 

£8111818 

iwmsB 


Sales: 75 (64) lots of 100 tonnes. 
SOYABEAN OIL — The market opened 
mixed and improved slightly in quiet 
trade. Closing prices and business done 
(U.S. S per tonne): Aug 482.50, 
485.50. untraded: Oct 492.50. 483.00, 
unuaded; Dec 483.00, 464.00, 464.00- 
483.50; Feb 489.00. 490.00. 489.00; 
Aoril 497.00. 499,00, untraded: June 

500.00. 512-00, untraded; Aug 504.00, 

515.00, untraded. Sales: 35 (105) lots 
of 25 tonnea. 

SUGAR 

LONDON DAILY PRICE— Raw sugar 
£114.00 (£118.00) a tonne cif July-Aug 
shipment. White sugar daily price 
£153.00 (£159.00). 

Colombia announced a snap tender 
for 12,000 tans July-August shipment 


July 8 


July 7 


dose _^.^._!8314-315 

Opening--^. fexiR'Ii 1 

Morning fixing — ; S3 10.85 
-Afternoon fixmfl..S3l2LSQ 


Gold Bullion (fine ounce] 

(£183 >1-184)-* - |830S-lg307tfl . (£181!*- 182) 

(£181-181) s) B307-308 (£181it-182) 

(£181.486) 5307.40 (£179.956) 

(£183.151) 18306.75 (£179.481) 


Cash. | 6670-5 +15 ; 6660-75 ;-12J 

3 months, 6795-800 ‘,412.5 6790-800 -12.5 

Settlemre 6675 .+15 . - I 

Straits Ej; 929. 15 l — , — I 

Ne wYork 1 — _ • i 

Tin — Morning: Standard, cash £6675, 
70. 65-, three months £8806, 68,00. 67 to. 
96. 68.00. Afternoon: Standard, three 


COFFEE 

, Yost’ day s' + or 
i Close i — 

Business 

Done, 

July .... 

1258-39 

+ 13.G 

1260-30 

Sept 

1107-08 

— 3J0 

113005 

Nov 

1019-80 

-9.5 

1050-20 

JanuaLy ... 

988-91 

-9.5 

1018-88 


96S-70 

-10.5 

“998-70- 

May. 

933-38 

-12.5 

953-40 

July 

922-25 

-10J0- 

955-50 



1 

No. 4 Yesterday 

Previous j 

Business 

Ccn- ■ close 1 



tract ! 




Krugrad- 

I| Knio *166^167 - 
U Krug SW4-851* 

Ilia Krug 834 1*^6 If . 

Moplateaf 83281* -3834 (£ 180 - 1801 *) 

NewSov 174 Is- 75 ■ . (£416e-41T|) 


Sold Colas July .8 

King sov 
[Victoria Sov 


(£180-180 »j) 
(£92*«-93 Ul 
UC47h-47Si) 
I£19lt-19hi1 


French 80s 
SOpeosMex. 
100 Cor. Aust 
8BO Eagles 


882-82 (£48-49) 
882-821* (£48-49) 

*68.6-78.8 (£384-44) 
S584.1-3BB.B (£2 14* -2 16) 
Sm.8-508.8 (£17878-172 lg) 
8372-380 (£2077 b-212*) 


months EBBOO. Turnover: 3.890 tonnes. 

LEAD 

*-m. 

Ombfal 

+ Of 

! 

1 K-rit, 

Unofficial 



£ 

[ « 1 

£ 

£ 


317.54.6 

k«JS:322JL3 J 

+3_S 


32S..5 

+8 

333.0-4 

+3J6 

Settlemtl 

318.5 

+SJ 1 

l 


UJI. Spot! 

— 

i : 

•25-8 




Lead Mornmg:~ Cash £318.50, 18700: 
three months £331.00, 30.50. 31.00. 
29.00. 29.50. 29.00. Kerb: Three months 
£331.00, 32.00. Afternoon: Throe 

months £334.00. 33.00, 33.50, 34,00. 
34.5a 34.00. 33.00, 34.00. 33.50, 33.25. 
33.50. 34.00. 33.60. Ks lb: Three, months 
£333.00. 32.00. 31 LOO, 31.50. Turnover: 

18,125 tonnes. 

fforT 


Sales: 3.272 (2,573) lots of 5 tonnes. 

ICO Indicator prices for July 7: 
U.S. cents per pound: Comp daily 
1079 117.41 (118.28}; 15-day average 
119.99 (120.19). 

GRAINS 

Wheat saw some early ehon- 
coverin gat the opening but general 
liquidations and profit-taking eased 
prices. Any attempts to rally were 
soon squashed as sellers pushed he 
market beck. Barley started slightly 
higher but eased in quiet trading, Acli 
reports. 


WHEAT 


BA RLEY 


ZINC 


+ 071 

Official i — [Unofficial! 


P-tn. +or 


£ [ £ I £ I £ 

414- J +2.78418^-9.5+1.5 
417.5-8 v+B-261 422.5-3 4-10J 
414.S >+M| - | ..... 

- I ! 3S-7J I' 


.Yesterd'ys +or Ysst'rd'ys -f-or 
Mntfi dose — ! dose ~ 


Sept. 110.40 —0.85 104.45 —0.50 

Nov_ 115.85 — 1.M 108.30 -O.BO 

Jan._ 117.65 -LOO 111.70 .-085 

Mar-, 121J)5 -1.D0 114.85 -C.6S 

May-! 124.50 '-1 M 118.15 —0.55 


Z3no— Morning: Cash £*14,00; ihrBe 
months £420.00, 19.50. 18.00. Kerb: 
Three momrtw £*16.<n. 19.00. Aftar- 
noon: Three months £423.00. 24 to, 
23 to. 23.50. 23.00, 22.00, 22.50, 23.00, 
23J5. 23.00, 22.75, 23.00. Kerb; Three 
month* £422.00, 21.00. 22.00. 22.50. 
23.00. 22 to, 23.00. 22.00. Turnover; 
12290 tonnes. 


Aiumlnm a.m. 

l.omciu. 


H-or pjn. !+or 
1 — ! Unofficial, — r 


°°; <Wi*o«n: l5^A® ®0/ m 
noFj - {'“by 0 .v 

2J “0-4 ifc i**«: to M » 4-26. ft- 4 - 

* - 40 4.35. S6 

c 4.50. JHfr- a 00. n rfa ni4usi 


! . £ | £. ! £ I £ 

spot i 553-5 |+5 1 592-3 ! + 6 

5 months 57E-.5 +*,75: 071-8 i + 6 


•5 <46, S6 4 1 "* ®4 Thompson' 7 60*W%I 

.4.7b. ■ 7§ 4.S0, gg- a 00- • QjtinAviu. « 20, an — 

J*mi lc *p : jJJA/126 3-0^-tt). SP* n, V>: 0 oz . 8 a* 

: V 0 4 '*ianS‘ 030-°40; B»'9'* n 0,40-0-ft- 

It'S" 5» Be 8«! Cl« r, r , Dts 7to-8-°° : 

^ $S^l£'SZl C«''f 0«n?e‘ 15 W ^ B - 00 * 6 ^ «•“- 

By the time you’ve waded through 
this page.Prestelfe commodities 
nave been updated twica 

On Pres^ you'll find Commodity pices from London, New Mykand 
Chicaai Bjsofiedbv Reuteisand Inter Oommodfties. Along vwthdhers 
thgflgt Gas OB prices, and iniorrn^tion updated dafly from Chart Analysts 
araj Commodet And it won't cost as much as you thinly because you can 

^'Sr^w^oi^aioaPrester^ 


Aluminium- — Momma: Thret months 
£574.00. 72.00. 72 to. 73.00. 73.50. 
74.00. 73.50. 73.00. 72.00. Keib: Three 
months £572.00. 71.00. 71.50, 72.00. 
Afternoon: Three months £573.50. 73,00, 
72.50. 72.00. Kerb: Three months 
ES71.00, Tito, 72,00, 73.00, 72,00. 
Turnover: 10,575 tonnes. 


NICKEL 

*-m. If or 
OfTJciaf | - 

pjn. '+ or 
Unofficial; — t 

Spot 

3 months 

1 

300540 1+18 
3000-15 ;+7.5 

3015*25 1+10 
5006-80 -+17JI 

‘ 


t On previous mioffieitl close. 

BlfcksJ — Mbrnmg: Three months 

POrt. Afternoon: Three months £3010, 
16. Turnover: 246 tonnes. 

SILVER 

Silver wss fixed 11 .35p en ounce 
higher for spot delivery m the London 
bullion msrftet yutardey et 335.ip. 
U.S. cent equivalents of the fixing 


Business done— Wheat: Sept 111.40- 
110.40, Nov 115.05-113.85. Jan 113.35- 
117.65. March 122.20-121.(5. May. 
1S.55-124.50. Sales: 515 tots o! 100 
tonnes. Barley: Sept 104.85-104.45. 
Nov 108.50-108 to. Jan 112.20-111.85. 
March 115.55-114 8S. May 118.75- 
118J25. Sales: 114 lots of 100 tonnes. 

LONDON CHAINS— Wheat: U.S. Dark 
Northern Spring No. 1 14 per cent 
Aug 111.50. Sept 110.55, Ott 111.25 
transhipment East Coast sellers. 
English Feed fob Sept 114 East Coast. 
Nov 118.50 Bristol Channel sellers. 
Maize: French July 136.00 sellers tran- 
shipment South Coast. S. African 
Whtta/Yeliow JolyAug 86-00 seller. 
Barley: English Feed fob July/ Aug . 
104.75 cost Coast Seller. Rest 
unquoted. 

RUBBER 

The London physical market opened 
unchanged, attracted I.Rle interest 
throughout the day and closed quiet. 
Lewis and Peat recorded cn August 
fob price for No T RSS in Kucia Lumpur 
of 202. 5 (same) cents a fcg and SMR 
2D 174.0 

No. 1 ‘ Yest*r*y* Previous Business 
RAS. dose . close Done 


AUB .- 49.2IMBJ8 . 4938-49.40 — 

Sept ... 60,00 SO. 10 493950.18 - 

Oct-Dee B1.8B-Sfl.B8 blto-iSL. 10 BUB-5 1.20 
Jon-Mar S4 30-64,60 64JO-H.m54.70-5i.ai 
Apt -J no 67.304D.4fl 67.40-673057.40 
Jly-Sept BB.TO-Wjn SBJO-K3.3S 59. W 
Oct-Deo B2.aa-SJ.on G2to-KL<D — 
J’n-Mch 65.tB-65.30 - 65.36-55.50 — 

Apl-Jne . 6730-88,80 ; B7.S0-68JW — 

Sales: 89 (188) lots of 15 tonnes, 
nil (18) lois of 5 tonnes. 


£ per tonne 

*ug 'ii8.7o-iB.75;ng.io-ia jsn iB.25-16 jo 

Oct : 13 1JSJ1.B8 1 12536-25.85 12430- Z0.S0 

Jan I28JD-28.96! 33 130- 32.50 129.0S28J5 

March 164.08-54.05' 136 JO-38.75 114730- S3 J6 

May 1 36.76-37.26i 1 3830-38 JB 357.76 

Aug. — 140 30-4 130 1 142JU-46.BO.'140.7S-40J» 
Oct_ 344 JJO-ttJOj 344 30-50. DO, 

Sales: 3,364 (3,951) lots of 50 
tonnes . 

Tate and Lyle delivery price for 
granulated basis white sugar was 
C4C5. 90 ( same), a tonne for home trade 
and £220.00 (£224,50) for export. 

international Sugar Agreement (U.S. 
cent per pound) fob and slowed 
Caribbean ports. Prices for July 7: 
Daily price 7to (8.05): 15-day average 
7.15 (7.05): 

WOOL FUTURES 

LONDON NEW ZEALAND CROSS- 
BREDS— Close (in order: buyer, seller, 
■business). Hew Zealand cents per 
kg. Aug 369. 375, nil; Oct 390. 393. 
nil; Dec 404. 408. 404-402; Jan 405, 
410. 404: March 415, 420, nil; May 
426. .430. nil; Aug 438. 443, nil: Oct 
440, 444. nil; Dec 442. 447. nil: Jen 
444. -450. ml. Sales: 12. 

SYDNEY GREASY WOOL — Closa (In 
order: buyer, seller, business). 

Australian cents oar kg. July 544.0, 

545.0, 544.0-540.0; Oci 512.5. 513.0, 
514.5-512.0: Dec 516.5. 517.0. 516.0- 
517.0; March 523.0. 525.0. 525 0-524.0: 
May 525.0, 528.0, 528.0-S270; July 

537.0, 53B.0, 537.0; Oct 532.0. 535.0. 
-urmeded; Dec 535-5.' S36.0. 536.0. 
Sales: 76. 


Copper. i i i 

Cash h grade... £785.5 1 + 9 j*732.5 

3 Rlthe _.i£803.75 +836,£756JI5 

Cash Cathode..'£773 1+9 t£T2B 

3mths_ £793 +7 £748 

Gold tray n .... 1307 1—3.5 [1826.876 

Lead Cash 4313.5 +1.5 1*392.25 

3 mths £324.3 ;+l.S6tC308 M 

Nickel £4080 } [83922 

Fref* mkt !232r2fi2e; 235)28Bq 

PlBtln'mtr or‘_y £260 ^S3C0 

. Free mkt. £152.45 ~2 £167,20 

Bulakelhrert ... 93B0f378 ' _.|»37B|880 

Silver troy oz„. 323.75j» -18,06 331.40p 

3 mtfts. 333.45j> .-16Ji6!341.65p 

Tin Cash [£66B0 1 + 65 UG6520 

3 mtfis._ £6807.5 i + B7.5|£6385 

Tungsten22.il Ibl 3 109.46 | J111.B8 

Wolf rm lUnbelt 1151118 I 3110113 

Zinc Oesh £409.5 +1 £388.5 

3 mths [3412.5 -0.5 £387.75 

Producers. ._[f800 3680/800 

Oil* 1 

Coconut (PhIO |9475v 

Groundnut ; i 

Unseed Cmde^353v 
Palm Malayan If442.5w 
Geode ( 

Copra Ph lip ...3320 
Soyabean (UJB0 iCE 5O.6 
Grains l 1 | 

Barley FuL Scpt£104J5 +0.25 £104.50 

Maize £138.00 [ >£138.75 

Wheat FirtSep £111^5 [+1J»!£1 09.00 
NoJSHardWintj { | t 


Other I 

commodities; 

Cocoa shlpt* to73 
Future Scpt£942.5 
Coffee Ft' Sepfrfil 110.5 
Cotton A.lndex[7B^5c 

Gasoil Au» 1*279.5 

Rubber iKnc;...|4B^p 
Sugar (Raw) '£118v 
Woott’ps64s U.|388p kilo 


t 


16 3505 

3595 

5380 

,3612.5 




3340 

]3*e7 


i+8 £905 

1+8 (£905.5 
r— 1 Mil 129 

; i76.15c 

1— 2 1292 

W9top 

+2 (£96 

|387pkile 


t Unquoted, x Aug -Sept. u-June-July. 
v July-Aug. wAug. t Par 76 lb flask. 
* Ghana cocoa, n Nominal. 


NEW YORK, July 8. 

PRECIOUS METALS end copper rallied 
sharply on a weaker dollar and lower 
interest rates. Heating oil was under 
pressure because of disunity among 
Opec members. Cotton was sharply 
higher on news of further damage to 
the Texas crop. Coffee rcrtraaied 
sharply aa cold temperatures failed to 
realise. Cocoa advanced sharply on 
aggressive short-covering ahead of the 
ICCO meetings next week, reported 
Helnold. 

Copper— July 59.80-50.10 (57.85). 

Aug 60.50 (58.25), Sept 61.00-51.40, 
Dec 63.55 -63.6S, Jan 64.25. March 65.75- 
85to. May 67.25, July 88.75, Sept 70.25. 
Dec 72.50, Jan 73.25. March 74.70. May 
78. IQ. 

322-0 (311.3). Aug 

C313.5K Sept 329,0. On 
332-3-333,0. Dec 338.5-343.0, Fab 348.0- 
*S5-2- 355.0. June 362.8, Aug 

370.8. Oct 378.9, Dee 387.1. Feb 395.3 
April 403.6. 

Potatoes (round whites) — Nov 68.7- 
67.5 (66.2).' March 76J (76.5). April 
87.4. Sales: 1%. 

ISilw-July 612.0-613.0 (572.0). Aug 
814.0 (575.5). Sept 620.0-623.0. Dee 
645.0-648.0. ' Jan 655.1, March 671.7, 
May 688.3, July 704-9, Sept 721 .5, Dec 
746.3, Jan 7S4.6, March 771.2. May 
7Bo-o. i 

Sugar— No. *11: Sept 8.03-8.04 (8.16). 
Oct 8.22-8.24 (8 to). Jan 8.60-8.80, 
March 9 30-9.32, May 9.54. July 9.75, 
Sapt 9.92-10.00, Oct 10.08-10.10. 

Tin— 631.00-535.00 1530.00-632. 00). 

^ CHICAGO, July 8. 

, l-artH— Chicago loose 21.00 (same). 

Uve CatU«>— Aug 62.30-62.40 (62.271. 
Oci 59.30-59.40 (59.97). Dac 60JJ5- 
60.20, Feb 60.00-60.15, April 59.75 
June 61.00. 

Live Hogs— July 59.70-59.80 (59.45) 
Aug 57.80-57.65 (57.17). On 54.70- 
54.60. Dec 54.80-54.70, Feb 52.80. April 
sn.65. June 50.75. July 50.80, Auq 
49.70. 

2M-3B3>4 (26 7.), Sept 

Dbc 2B 3 4-2B3*«, March 
277*4. May 288^-286*4, July 292. 

Pork Bellies— July 76 80-77. 3 (78.12), 
Aug 74.20-73.90 (74.85). Feb 71.70- 
.72.20. March 71.50-72.40, May 68.80, 
July 70.00-6B.80. Aug 07.30. 

' t Soya beans— July B14VB15 (609*j) 
Aug 916*1-617 (809), Sept 616*2-618! 
Nov 619*1-618*2. Jan 634-633, March 
650, May 683-B63S. July 674. 


jfSoyabean Meal— July 17B.7-179.0 
(177.3). Aug 173.8-178.6 (176.8), Sept 
179 0-178 7, Oct 173.7, Dec 182.5-182.7, 
Jan 185.0, March 1B9.0-1S9.5, May 
193.5-194.0, July 199.0-200.0. 

Soyabean Oil — July 18.57-19.56 
OBJB). AuB 13.65-18.63 (18.42), Sept 
18.80. Oct 19.00. Dbc 19.30-39.38. Jan 
19.65. March 19.90, May 20.00-20.05. 
July 20.10-20.35. 

tWheat-^uly 231 * 4 (3294.), Sept 
34o*i-344*a (342ft). Dec 367ft -367ft. 

March 381, May 386, July S81. 

„ . WINNIPEG. July 8. 

f Barley— July 124.1 J123.6), Oct 

20.2 (120 2). Dac 122.6. March 125.5, 
May 127.5. 

All CBnts per pound ex-warehouse 
unless otherwise stated. « $ per tro> 
ounce. 5 Cents per troy ounce. 
If Cents per 56-lb bushel, f Cena 
buBhBl ^ II* P* r short tor. 
rt). $ SCan. par mernc ton. 
S5 S P«r 1 000 sq It. f Cents per 
dozen, ft S per metric ton. 

Wednesday’s closing prices 

NEW YORK, July 7 

D °P 1 508, March 156S, May 
3 8 10) J “ ,y 1631 ' SePl 1686 ‘ Sb,M: 
Connact: July 134.50- 
123.00-123 -2E 
«? cc March 

JS’IS'ISZ- 00, ®* pt 1C8 ' 50 ’107to, Dec 

102.00-105.00. Sales: 3,150. 

.Cotton — No 2 July 66.75-67 
(6810). Oct 70.60-70.70 (71.64), Dec 
' jS'S? -72,80 ’ March 74.60. May 75.65- 

Sf&T® °“ ’ 6J5 - 77 
iftrtsE 

0cl “-W-W-TD. Nov 
S^SS-S 1 Dec 91 w - 91 -75, Jan 92.55, 

I’ so 3 ^ ,S‘ “ “ ** 

_ 0ra i5? Ju >CO — July 120 90 (119.75). 

Nov i23 - 9 °* 
12S 0 °- 126.45-12fi.ffi, 

May 127.90-129.00. July 129.35-329.60 
g-.UWLW.10L Nov 132.2S-132-5o! 

CHICAGO, July 7. 

lmm — Se P f 317.0-317^ 

Dec 328.8-329.0 (326_2), March 
340. D. June 351.7. Sept 363.6. 


EUROPEAN MARKETS 


COTTON 


LIVERPOOL — No spot or shipment 
sales were reported. With uncer- 
tainty the keynote, caused by the 
Widespread belie! that supplies of the 
raw material would be decreased 
owing ' to adverse weather conditions, 
end the slack state of deliveries, busi- 
ness was slow to broaden. Trading 
being at a Bland still, buyers were 
unwilling to anticipate thsir needs. . 

POTATOES 

LONDON POTATO FUTURES— The 
msrker followed further easing of 
eady's, reports Coley and Harper. 
Ctosmg pnces: Ngv 53J20, -090 (high 
63.60, -taw S2JBQ); Feb 60.00, -Qto 
60 to, tow 58.80): April 67.50. 
-0.50 (high 68.30. low 67. JO): May 
76JJ0. -0.70 (high 76.50. tow 75.70): 
Nov 63.40. —0.10 (uimcded). Turn- 
over. 202 (31) lots of 40 tonnes. 


INDICES 

FINANCIAL TIMES 


July 7 

July 6 

Mth aflO 

Var ago 

230.08 | 

231.70 

229.04 

254.79 


(Bass: July 1 1952 - 100) 

RHJTGRS 


July 8 

July 7 [Mth ago 

Vor ago 

1554.4; 

1563,81 1499.2 

1798.1 


MOODY’S 


July 7 i July 6 ago|YarasK> 


992.6,1001.1! 987.6 I 1069.8 


(December 31 1931 ■ 100) 

DOW JONES . 


Dow | July 
Jonas 1 7 

July 

6 

Month 

ago 

li 

Spot 1121.53 
Futr’s 1120.06 

122.54 '123.00 
120-96123.51 

— 


' [Base: December 31 1974 — 100) 


PARIS, July 8: 
Cocoa — (FFr per 100 kilos): July 
1060 asked. Sept 1096/1300, Dec 1143/ 
1160, Mar 1190/1200. May 1229/1238, 
July 1272/1281. Sept 1302/1318. Sadn 
at csU: nH. 

Sugar— (FFr per tonne): Auq 1811/ 
1925, Oct 1601/1692/ Nov 1680/1690, 
Dec 1815/1625, Mar 1603/16*. May 
1725/1740, July 1750/1770, Aug 1770/ 
17W. Sole* at call: 18. 

ROTTERDAM, July 8. 
Wheet— (U.S. S per tonne): U.S. 
No. Two Red Winter July. 145. U.S. 
No. Three Amber Durum July 170, 
Aug 173, Sept 175, Oct 178. Nov 182. 
Dec 188. U.S. No. Two Northern Spring 
14 per een Aug 175, Sept 172.S0, Oct 


!Z 4, Nov „ 177 ‘ ° DC 182 - Can-atf.sn 

western Red Spr.ng Juiv-Sepc 196. 

Maize — (U.S. 5 per tonne); U.S. No. 
Three .Yellow afloat 123.50. July 123 
Aug 121.50. Sept 121. Oct-Dec 119’ 
Jan-Mareh 127 sellers. 

Soyabeans— (U.S. S per tonnel: U.S. 
Two Yellow Gull porta afloat 245. July 
Aufl M7 - 30 - Sp pr 247.75. Oct 
*40, Nov 240, Dec 244,75. Jan 250 50. 
Ffib 254.25, Match 258 sellers. 

Soya meal — [U.S. S per tonne): 44 
per cent arrived 197. July 205.50 Oct 
314 traded: afloat 202. July 2C0,' Aua 
313, Sept 214. Oct 214.50, Nov-March 
233 sellers; Wo v- March 220 buyers. 
Pellets Brazil afloat 214. July 215, Aug 
216, Sept 222. Oct 225, Nov-March 241 
sellers. 


MEAT/FISH 


5MJTWF1 ELD— Pence per pound. 
Beet: Scotch killed snfss 77.8 to 83.5; 
Ustsr hindquarters 94.5 to 97.5. Veel: 
Dut;h hinds and ends 121.5 to 
Lsmb; English smaM 68.7 to 73 A 
medium 660 to 73.0, heavy 62.0 to 
6.0; Scotch medium 62.0 to 55.0: 
Imported— New Zealand PL 62.5 to 


64.0, PM 62.0 to 63.0, PX 59.0 to 60 0, 
YL S1.0 to 62.0, Pork; English, under 
100 lb 34.0 to 64.0. 100-130 lb 42.0 to 

61.0. 120-160 Jb 40J5 to 50.0. 

MEAT CO N8U I SS ION— Average Fat- 
suck prices at reprauntetiva markets. 
G8 — Cettie, 102J27p par kg lw 

(-0.40). GB— Sheep. 143J7p per kg 
eat dew (—13.34). GB— Pigs, 7S.95p 
per kg lw (-I-0J9). 

GRIMSBY FISH— Supply good, 
demand good. Prices at ship's side 
(unprocessed) per stone: Shelf cod 
£4.00i£5.00, codlings £2to-£3to: large 
haddock £4.20. medium £2-50>£3to, 
small £1.60- £2. 40: large plaice £4.20- 
£5.40. medium £3.8O-£S.B0, best small 
C3.00-C4.70: large eklnnsd dogfish 

£9.00- £12-00, medium CS.00-CS.50; 
large lemon sales £7.00, medium £6.50; 
roculish 80p; setih* £1.40-£1 to. 

COVENT GARDEN— Prices tor too 
bulk of produce. In sterling per 
package except where otherwise stated. 
Imported Produoe: Mandarins— Brazi- 
lian 5.50-6.00. Oranges— Jeffs: 20 kg' 
Valencia lates £56/60/75 6.25, 8B 5.83, 


105 5.90. 123 5.05. 144 4.B0. 168 .4.50: 
Moroccan: 16 kg Valencia lates 48/113 
3to-5to; Outspan: Navels 40 5.50, 
48 5.70, 58 6 35, 72 6.25, 88 5.60, 112 
5.20, -138 4.85. ISO 3.90. Lemons— 
Spania: rraye 5 kg 40/50 1.60-2.00; 
Oirtemn: 15*i kg 80/180 5. 00-6 to. 
Grapefruit— Jaffa: 20 kg 27 425. 32 
4.45, 36 4.65. 40 4.90. 48 5.40. 56 
5.35. 84 5. IS. 75 4.95, 88 4.00: S 
African: 27 4.00, 32 5.25, 35 5.25, 40 
5.26, 48 5.40, 56 5.35. 04 4.65. 72 4.33 
—flu by seme aa White. Apples— 
French: Golden Delicious 18 kg 8.00- 
9.50; Tflema'mien: Jonathan 11.00, 

Granny Smith 10.00-10-50. Stunner. Pip- 
pins 10.50*11.00; Austral -an: Granny 
Smith 10.00-11.00; New Zealand: 
Granny Smith 10. CD- 11. 00, Sturrtiera 

11. 00- 11- SO: Red Doherty 12.00-13.00; 
5, African: Granny Smith lO.OO-II.OO. 
Golden Dalictous 12.00-12,80. Stark* 
crimson B.00-10.50: York Imperials 9.00- 
11.00: U.S.: 18 kg Red Delicious 9.C0- 

12.00. PBare — Spanish: Mauratini per 
lb 0.30: Austratien: Winter Nels 12.50- 
14.50. Spanish Uoignara. 30p-33p lb. 
Peaches - -Italian; large treys 3.50-8,00: 
Standard 2.50-3.50. French: A/AAA 
4.40-4.80. - Plums — Italian: Florancre per 
lb 0.20-0^5; Spanish: 11 lb Santa Rosa 
0.22-0.4S, Jap H ib, per lb 0.1 2-0 JO. 
Givjotta 0,40-0,55. Grapes— Israel:: 
Perl otto 5.40; ChHean: 5 kg Almeria 

8.00, Ribier 6.50-6.80; Red Emperor 

5.20-5.40; Cypriot: 12 lb Cardinal B.00- 
6.60 Suftene 8.-00. Cherries — liahen: 
Par Ib 0.40-0 .70: Turktoh: 0.60-0.75: 
U.S.: Oto. Apricots— Spanish; 5 kg 
2.50-3.50. Nectarines — U.S.: 60/64 

14.00- 15.00: Spanish: 3-OOrt.OO; French: 
Small Trayt Z20-2.S0. .Melons — 


Spanish: Gaha 2.00-3.C0, Yellow TO kg 
3.50-4.00; Israeli; Yeflow 2.00-3.00; 
French; Charantais 11/15 6.00-8.90. 
Water-Melons — Spanish: IB kq 2.60- 

3.00; Israel : 2.50-3.00. Pineapples S. 

Aliman; 5/9 &.CO-6.00: Ivory Coast: 
20s 0.45, 12s 0.75, 6s 1.23; Kenyan: 
fis eacn 1.60-1.70 Bananas — Co lom- 
bien; 40 Ib boxes 9.20. Avocados— -S. 
African: 4.20-4.50: Kenyan: 4.00-4.60, 
Mangoes — Kenyan: 8/16 4.00-5.00; 

Mexican: fi.50. Papawg— Biasilran; 6.C0. 

English Produce: Potatoes — Per 

pound new 0.C4-0.C5. Mushrooms— 
Per pound, open 0.30-0 50, tfosed 0.50- 
0.70. Lettu ce P ei 12. round 0.80-1 
Webb's 1.23-1.60, Cos 1.35-2.00, 
Onion* — Per S-lb 40/flCmm 3. GO-3. 6a 
Spring Onions— Per bunch 0.08, Primo 
Cabbage— Per 25-HS 1.00-1.40. Carrots 
—Per 22/23-lb 2.50J.50. per bunch 0.12. 
Rhubarb— Per pound, outdoor O.CS- 
0.10. Courgettes— flar 12-ib lto-2/W. 
Cucumbers — Per package 1.60-2.40. 
Tomatoes— Per 12-lb bo* D/E 2JO-2.CO. 

Csulrflowers— Per 12 Uncotn 2.53-4.00. 
Celery — Par 1 2/20 2CO-3.M. Bread 
Beans — Per pound 0.05-0. 10. Marrows 
— ash 0.15-0 to. Sugar Pees— Per 
pound 1.53 Peas— Per pound 0.12-0.15. 
Turnips— Per 28-fh 2 CO. Runner Beans 
—Per pound 0.35-C.50. Apples— Per 
pound, Brantley 0.23-0.38, Gnmedtcrs 
0.30. Strawberries — Per OJS- 

0.40. Raspberries— Per 4-o* pack 0.13- 
0.20. Gooeabfcrrws — Per pound 0.15; 
Levellers 0JS-0.50. Cfiomes — Par 
pound 0.25-0.50. .Red. Currants — Per 
8-oz 0 to- 0.25, Black Currants— Par 
8-oz 0JW-0J5. 


• -- :J 



• vu 


Companies and Markets 


NEW YORK 


; duty < duly 
f 7 i 8 

" 30 >1 i 3058 
,j I4*a ; 15 
J 27Sfl 27ij 
.1 26*» , 2618 
.) 17 ; 17U 

.. 283s | 284 
. 2776 . 18 
154 i 154 
. 254 ! 254 
6 554 

I 8S 4 85* 

I 294 I 284 

,i 184 ! 194 
244 - 224 
- 124 I 124 
J 524 1 324. 

II 177b : 174 

; 20 ; 20 
244 ! 244 

. 22 U j 227* 
.1 294 I 294 
284 ■ 277a 
,.! 124 1 124 
124 i 121 b 


AQF Industries.-! 

AMF.„„ 

ARA. 1 

ASA. .......I 

AVX Corp.. — „.| 
■ Abbot Lsbi 

Acme CteVo — 

Adobe Oil ftfiu 
Advanced Micro. 
Aetna Life * Gmi 
A hmanson CH.F.r 
AIrProd AChem 
Akzono...-— 
Albany lift 

AibertoOuiv..^ 
Albertson'* ...... 

AlcanAlumlnlumt 
Akn Standard....; 

Alexander A At..., 

Aiegheny Int 

Allied Carp,........! 

Allied Store* 
Ailia-Chalmen.—i 
Alpha Portd 


Alcoa. 

Amal. Sugar 

A max 

Amdahl Corp 

Amerada Hess— 

Am. Airlines. 

Am. Brands 

Am. Broadcast'^ 

Am Can. 

Am. Cyanamld..... 
Am. Elect. PowTk 

Am. Express 

Am. Can. Insnce.- 

Am. Holst A Dk i 

Am. Home Prod.. 
Am. Hose. Suppy. 
Am. Medical Inti , 

Am. Motors ~ 

Am. Nat. Rescss. 

Am. Petflna. 

Am. Quasar Pst..i 

Am. Standard... „] 

Am. Stores I 

AiYi.Tel.A Tel ; 

Ameteklnc > 

Amfac - 

AMP . , 

Anuttar 

Amittid' indsll.l j 
Anchor Hockg_.l 
Anheuser-Bh —...I 
Archer Daniels...) 




Armstrong CK.. 
AsameraOll.... 

Asarco 

Ashland Oii””" 
feud. D. Goods, 
Atlantic Rich .. 
Auto- Data Prg. 
Ivco. 

Averlnytl 


..[ 154 * 154 
74 74 

21 ; 214 

254 24 Tg 

,.| 324 : 324 
... 394 ! 36 
.- 224 • 92 
... 154 , 164 
..i 254 ! 254 


Avnet ' 

Avon Prod | 

Baker Inti 

Bolt Gas A Et I 

Ban Cal — 1 

Bangor Punta ... 
Bank America ... 

Bank of N.Y 

Bonkers Tut N.Y. 

Barry Wright 

Bausch & Lamb. 
BaxtTrav Lab — 
Boa trice Foods.. 

Baker Inds 

Belf A Howell 
Bell industries .. 
Bendix 

Beneficial * 

Beth Steel — > 

Big Thee Inds 

Black A Decker. 

Block HR j 

B ue Bell i 

Boeing 

Boise Cascade 

Borden 

Borg Warner.. — i 
Briggs Strain — ; 

Bristol-Myers 

BP...- 

Brookway Glass- 
Brown Forman B’ 

Brown Grp.. 

Brown A Sharp... 
Browng Ferris....' 
Brunswick — , 


Bucyrus-Erie 

Burlington Ind ... 
Burlington Nrthn, 

Bumdy : 

Burroughs. ; 

CBI inds. 

CBS 1 

CPC Inti- 

CSX 

Campbell Red L. 
Campbell Soup.-! 
Campbell Tagg ... 
Canal Randolph. 

Can. Pacific. 

Carlisle Corp 

Carnation- 

Carp Tech. 

Carter Hawley... 1 

Caterpillar 

Celanase Corp... 

Cental. — . 

Centex — . 

Central A 3w _... 

Central Soya 

Certain-teed 

Cessna Aircraft.: 
Champ Home Bid 

Champ Int. 

Champ Sp Plug- 

Charter Co 

Chose Man hate n 

Chemical Nr 

Chesels Pond 

Chicago Pneum..- 

Chrysler : 

Chubb I 

Cigna— 1 

Cincinnati Mli....i 

Citicorp- 

Cities Service.... 

City Invest 

Clark Equipment 
Clave Cliffs Iron.: 

Clorox 1 

Clue 1U Peaby .... 

Coca Cola. 

Colgate Palm -.... 
Collins Aikman... 
Colt Inds 


134 I 134 
374 574 

43 \ 434 

294 I 50 
204 I 204 
194 194 

107,1 107s 

114 114 

154 i 154 
3 ! 23* 

124 j 124 
84 i 84 
87g 84 

363, 383* 

274 287g 

31 514 

124 124 

Big 7 
36 Ig 564 


, Columbia Gas — ; 304 
Combined InT-.i 194 
i Combustn- Eng.., 234 
: Cm with. Edison.' 207| 
Comm. Satelite-. 624 


I Comp. Science— 

: Cone Mills. 

; Conrao.. ....! 

i Cons Edison i 

Cone Foods. I 

Cam Freight——! 
Con. Nat Gas — 
Conmuer Power 
Cant Air Lines— 

Conti, corp 

Conti. Group— 
Conti. Illinois— . 

Ganti.Teleph 

Control Data 


llTg ! 1 2 
274 28 

254 254 

174 17 4 

344 | 344 
39 36 

244 244 
174' 174 
44 4lg 
224 224 

264 264 
194 204 

18 16 
237a >44 


Cooper Inds... ....) 

Coora Adolph—.. 

Copperweld. „i 

Coming Glass «—) 
Corroon Black...., 
Cox Broadcast's I 

Crane— J 

Cracker Nat— i 

Crown Cork 1 

Crown Zall 

Cummins Eng — . 
Curtiss- Wright - 

Damon 

Dana — 

Dart A Kraft. 

Data Gen 

Dayton -Hudson - 

Deere 

Delta Air .... 

Danny's—— j 


I Dentspbr Inti — t 
Detroit Edison....) 
I Diamond Inti—.... 
Diamond Shank,. 

' DiGlorplo ! 

Digital Equip 

Dillingham —I 

Dillon .... —..—I 
Disney (Walt) — 
Dome Mines..—.- 

Donnelly (RRJ 1 

Dover Corp 

Dow Chemical ...1 

Dow Jones [ 

Dreiser ; 

Dr. Popper... — 
Duke Power....... 

Dun A Brad.. i 

Du Pont ; 

EG A p 1 


Easco...— — i 184 

Eastern Airlines. 64 
Eastern Gas A F.' 16tg 
Eastman Kodak..; 724 

Eaton - J B4S* 

Eehiln Mfg -j 124 

Eckherd Jack — 184 
Electronic DataJ 26ig 
Elect. MemorlesJ 4ig 


354 ' 254 
104 104 

134 134 

434 434 

201| | 20 
264 894 

254 254 

244 I 254 
254 ! 244 
IS • 184 
284 284 

374 374 

6 8 
254 264 

514 BlSg 
25 ' 24ig 

354 I 357g 
244 j 244 
534 32 7g 

264 | 2fiT 8 


El Paso 17 Tj 

Emerson Elect- 444 
Emery Air Fgt— 74 

Em hart- 295, 

Engelhard Corp- 191* 


Ensereh— \ 174 

Esmark 434 . 

Ethyl — Boss 

Evans Prod 74 

Ex OellQ 234 

Exxon — 27 

FMC.. 1 2A4 

Faberge— ..— ...j 16 

Fodders 55, 

Federal Co. 234 

Federal-Mogul.... 204 
Fed. NaLMort.... 10 
Fed. Paper Brd— 194 
Fed. Resources J 07g 
Fed. Dap. Stores, 41ig 

Fieldcrest Ml. ! 214 

Firestone— — . 114 

1st Bonk SyMtanT 284 
1st Charter Ftn-i 97 8 


144 
184 

aau 

7Tg 
234 
2Yg 

64 
16 
IBS* 

norma rwr * *_, 324 

! Ford Motor - 23 

Foremost Mck—.l 294 
j Foster Wheeler... I 11 
Freeport MoM.... 154 

Fruenauf. — I 184 

GAF ! 114 

CATX , 84Jg 

GTE Corp —| 274 


Gannet- —I 314 

Geleo — J 154 

Gen Am Invest -J 14Tg 

Gen Cinema ] 404 

Gen Dynamlos ... 294 
Gen Electric — 634 

Gen Foods \ 37sg 

Gen Instruments' 347g 

Gen Mills -1 414 

Gen Motors 444 

Gen Pub Utilities! 47g 
Gen Signal 334 

Gen Tire .....j 237g 

Genesco — | 4 


Genuine Parts. 
Georgia Pac... 

Geosouroe 

Gerber Prod... 

Getty Oil 

Giddlngs Lewis 

Gillette - 

Global Marl no- 
Good rich lBFl 
G oodyear Tire 

Gould - 

Grace 

Grainger IW.W) 


NEW YORK 


Indices 


—DOW JONES 


| July t July 
Stock I 7 j G 

QtAtl.Pao.Teaj 7 "“gtT 

fit Basins Pet-J 2 2 

1 GtNthn.Nekoosa 1 314 314 
Gt. We*t R nan cl. LB 114 

Greyhound —| 134 <34 

Grumman- 29 294 

GufScWeston-J 124 124 


Gulf Oil.—. ! 274 

! Hall (FB) I 274 

Halliburton -.1 26 4 

Hammermill Pprj 23sg 

Handleman 12By 

Hanna Mining 25 

Harcourt Brace-1 134 

Harris Bancp , J 234 

Harris Corp—.-.: 23 4 

Harsco — J 16 

H«da Mining 84 

Heinz (HJL ; 314 

Hellar Inti.-— _ ' 164 

Hercules I 17T| 

Harsh ay.... ] 41 

Heublsin i 39 

Hewlett Pkd. 1 414 

Hilton Hotels 324 

Hitachi 214 



Husky OH I 

Hutton CEF) - 

1C Inds- I 

IU int. I 

Ideal Baal a Ind. J 

(deal Toy 

ICI ADR 

Imp Corp Amor.. 

INCO. — I 

Ingorso! Rand—; 

Inland Staal - I 

Intel j 

Inter First Corp — 1 

Interlake • 

Inter Nerth — > 

IBM 1 


<4 f 4* 
24«g 244 

294 304 

104 106* 
154 184 

124 124 

64 64 

4T, 44 

84 84 

394 394 

20 204 

294 30 

20 224 

254 254 
254 264 

607* 604 



Kaneb Services..! 
Kaufman Brd-.—' 

Kay Corp ; 

Kellogg 1 

Kennametal -i 

Karr-McGee.. — 1 

Kidds - -1 

Kimberly-Clark 
King's Dept St-.i 
Knight Rdr. NwsJ 
Koppers— — j 

Kroger 

LTV - I 

Lanier Bus. Prod 

Lear-SIegler > 

Lease way Trane., 


Lenox..— 

Levi Strauss..— I 

Levttz Furirtr. | 

Ubby Owens Fd., 

Uly (Eli). — I 

Lincoln Nat— . 
Litton Inds....— . 

Lockheed -j 

Loews.— 

Lons Star Ind*—. 
Longs Drug Strs^ 
Louisiana Land.. 
Louisiana Pae— 

Lowensteln - 

'LubrlzoL. 

Lucky Strs—.— ; 
M;A Com. Ino...— > 

MacMillan— —| 


134 { 134 

7 | 6Tg 

84 ! 84 
24Tg 26 
254 244 

284 29 

204 204 

684 687g 

17a 14 

294 304 

124 13 

Big 84 
334 304 

104 I 104 
144 ! 144 
214 ! 214 
27 274 


374 I 374 
224 224 

264 254 

224 224 
564 86 

367a 374 

414 414 
544 537g 

864 864 
204 204 

307s 30 

284 274 
17 164 

26 26 
164 17 

134 134 

124 134 

584 694 
134 134 


Mac- — ] 

Mfcrs Hanover— 
Manvflle corp. ... 

Mapcc 

Marine Mid J 

Marriott j 

Marsh McLean.. 

Martin Mtta- 

Maryland Oup— ; 

Masco —I 

Massey Fergn. ...! 
Mass Multl.Corp.i 

Mattel -• 

May Dept. Strs-’ 


374 1 374 
264 ; 264 
104 ! 11 
284 ' 284 
164 197g 

324 1 324 
304 29 Tg 

224 ! 23 
354 I 364 
324 : 317g 
2*2 
18 | 18 
14 j 144 
277g > 274 


Maytag — —I 

McCulloch 

McDermott CJR)-! 

McDonalds 

McDonnell Doug 
McGraw Edison.. 
McGraw-Hill 
McLean Trukg ...' 

Mead 

Media Genl- , 

Medtronic 

I Mellon Natl 

! Melville 

Mercantile Sts....' 

Merck 

! Meredith ■ 

Merrill Lynoh —i 


Financial Tiinfis 


MGM. 64 

Metromedia -.2054 

Milton Bradey 184 
Minnesota MM... 82 
Missouri Pac—' 664 

Mobil - 914 

Modem Merchgl 104 

Mohaeoo. — , 114 

I Monarch MJT— I 64 

Monsanto- ! 684 

Moore McCmrk-i 15 4 
Morgan HP)-.— 
Matorolo 614 

Munslngwear- *64 
Murphy (GO— ..' 1*4 

Murhy Oil ' 1*4 

Nabisco Brands- 34Bg 
NalcoChem— - i 207g 


WORLD STOCK MARKETS ; 

=Sy Early retreat on Wall Street 

tftijSS SSS^r;Sj;«g prices EASED invrirtnam Norcen E« W resumed Dows Mining end »me iuce^YB- 

=ass a** assart S2 1 sa to wonr ba ^ ^ SSA'JSSS^SSi^SSt 


Nat. can 

Nat. Detroit. 

Nat. DlsbCbem.- I 
Nat. Gypsum—.-; 
Nat. MedicaiEnt 
NaLBannieduetr* 
Nat. Service Ind. 1 
Nat. Standard.../ 

Nat. Steal. — 1 

Notomas 
NCNB I 

NGRm»*<h I 

I New England S.| 
NY State E AO... ; 

NY Timas 1 

Newmont Mining: 
NIeg. Mohawk....! 
NICOR Inc-..'.. — > 
Nielsen (AC1 A..-I 
NL Industries — 1 
NLT -.—.I 


197g j 15Tg 
20 204 

20 204 

174 184 

14 ! 13Tg 

194 i 20 

244 1 24 
94 94 

244 ' 24Sg 
16Bg I 164 
124 lZSg 



Outboard Marine' 
Overseas Ship-.. 
Owens-Coming*. 
Owe ns- Illinois .... 

PHH Group 

PPG Inds 

Pabst Brewing...- 
Pac. Gas A Elect.' 
Pac. Lighting —..] 
Pac. Lumbar . — 1 


244 : 234 

124 '< 124 
164 i 16 
S3 I 234 
IS j 19 
32 324 

21 * 204 

234 ; 234 
284 | 264 
174 I 184 


Palm Beach- 

Pah. Am. Air — 
Pan. Hand Pipe.. 
Parker Drilling.. 
Parker Hanfh.... 
Peabody Inti.-.., 
Perm Central.... 

Penney (JO 

Pennzoll 


,| 15 154 

. 34 34 

J 224 93 . 

. 114 11 

,. 154 164 

.. 54 64 

254 264 

374 374 

317s 324 


Schlumbargar— . 

SCM - — 

Scott Paper 

Seacon — 

Seagram...... 

Sealed Power — 
SearktfGD) ....... -j 

Sears Roebuck ... 
Security Pac....— 

Bed — - 

Shall Oil — 

Shell Trans ......... 

Sherwin-Wms — 

Signal 

Slgnode 


aimpHottV Prft...j ’4 

Skyline 184 

Smith IM -j 21 Ta 

Smith Kline Beck. M 
Sonosta lntl„— 1°4 

Sony 124 

Southeast Ben kg 137g 
8th. Cal. Edison.; B97 b 
S outhern Co.— , JfJs 
sum. Nat. Res....- 214 
Sthn. N. Eng.Tel.- Ji’a 
Sthn. Pacific . — 1 30 

Southlands 1 334 

i w. Banashoraa 224 
214 
244 
247g 
36 

234 


std on Ctlfomia.' 
Std OH Indiana— 

Std Oil Ohio 1 

Stanley Wka. j 

Stauffer Chcm—i 
Sterling Drug — ; 

Stevens (J.P.l , 

Stokely Van K—> 
Storage Tech™, 

Sun Co. — 

Sundstrand 

Superior Oil 1 

Super Val Strs—! 

Syntax. 

TRW - 

Taft — 

Tampax- — — < 


Tandy 

Teledyne — 

Taktronbc i 

Tenneoo I 

Taaora Pet 

Texaco 

Texas Comm. Bk* 
Texas Eastern —J 
Texas Gas Tm ...; 
Texas Instrim'te , 
Texas CHI AGas_.| 
Texas Utilities ... 

Textron ] 

Thermo Electron' 
Thomas Betts ... 

Tldewsrtsr — 

User Inti 

Time Ino - — 

Times Mirror 


Peoples Energy-! 84 

Pepsi 00 - 374 

Perkin Elmar— 177a 

Petrie Stores 22 

Petrolane.—. I37g 

Pfizer- B34 

Phelps Dodge— 22 

Phila Elect 135g 

Phllbro Sal’n lnc.1 B47g 

Philip Morris.. 484 

Phillips Pet 304 ! 

PI II bury 384 

Pioneer Corp 164 

Pitney- Bowes.— 314 

Plttston I 147s 

Planning Rea'ch.; 64 

Plesaey 88 

Polaroid .... 174 

Potlatch 244 

Prentice Hall 27 

Proctor Gamble.* 824 

Pub.Serv. EAG.I 194 
Pub. & Indiana... 224 

Purex- 254 

Purolator 534 

Quaker Oats 39 

Quanex. - 8 

Queetor- 134 

RCA. — 164 

Raison Purina— 134 
Jtamadalnns. — 44 

Rank Org. ADR-. 84 

Raytheon— 364 

Reading Bates ... 12r s 
Redman Inds— 114 

Reeves Bros. — 

Relchhdd Cham 104 
Republiabanc — 264 


Republic Steel...' 

Reach Cottrell 

Resort Inti A—; 

Revco (DSL 

Revere Copper... I 

Revlon 

Rexnord 1 

Reynolds (RJ).— . 
Reynolds Mtls. ...: 

Rita Aid- _! 

Roadway Exp*..-: 

Robbins (AH) I 

Rochester Gas-, 
Rockwell Inti — 
Rohm A Haas-.. 

; Rollins— .....I 


Roim.- 1 — 234 

Roper Corp 10 

Rowan 94 

Royal Crown 177s 

Royal Dutch. 314 

Rubbermaid— 404 
Ryan Homes...... 143* 

Ryder System— 284 
8FN Companies.. 174 
SPSTeohncLgies 134 

Sabina Corp. 334 

Safeco — 314 

Safeway Stores.. 514 

St. Paul Cos 364 

St. Regis Paper.. Blfg 
Santa Fa Inds....; 154 

Saul Invest- I 64 

Sobering Plough: 287g 


Timken....- 

Tipperary- 

Tonka. — 

Total Pet 

Trane.... 

Transsmorica 

Traneway.. 

Trans World- 

Travellers....— .. 
Trioentrat 


. 454 I 45 
6 64 

. 164 164 

. 10 104 

. 334 344- 

. 184 18T> 

204 197g 

194 194 

194 194 

„ 61s 6T| 


Tri Continental- 
Triton Energy. 

Tylqr - — 

UAL- — 

UMO Inds 

Unilever N.V— 
Union Camp. — 
Union Carbide.. 


- 184 1 184 
.. 124 I 124 
.. 134 137s 
.. 174 1 174 

- 84 > 84 

.. 613* 82. 

J 444 I 44Tg 
,.| 42 | 414 


Union Oil Cal.™ 30 fg 
Union. Pacific— . 314 

Uniroyal. 74 

Untd. Brands 74 

Unt Energy Res. 29 
U8 Rdellty G * 364 

US Gypsum 277g 

US Home 114 

us Inds. - 9t* 

US Shoe..-. 317s 

US Steel 184 

us surgical- 22 

US Tobacco- 444 

US Trust 344 

UM.Technofgs... 374 
Utd. Telecomms. 174 

v£— 3 

Vartan Aenxa. ... 36 
Vemltron 9 


Virginia EP— 12Tg 
Vulcan Matrls— 404 
Walker (HI Res... 124 
Wal-Mart Stores 614 

Warnaoo — . 304 

Warner Comma..; 444 
Wamer-Lambt.-i 20 
Washington Post S4U 
Wests Mangt.— 274 

WelsMkta. -. 27>* 

Wells Fargo. 204 

W.PoInt Psppi— 234 
Western Alrflhs. 64 
Wastn. Nth: Am.. 77 g 
Western Union-. 28 
WesUnghouse ... 254 

Westvace 204 

Weyerhaeuser-. 24 


Whealobratr F... 
Wheeling Pitts-. 
Whirlpool 
White Consoltd- 

Wh Ittakar. 

William* Co- 

Winn-Dixie 8tr— 
Winnebago...—... 
Wise Elec Power 

Woolworth 

Wrigley 

wyiy 

Xerox — ... 

Yellow Frt Sys ...; 

Zapata 

Zenith Radio i 


' July I [ 1982 [Since Cmpll’t’n 

7 i.July , July ) July June 1 June 1 [ 

; 6 I 2 1 1 ; 30 j 29 j High [ Low j High | Low 

~ 788.66 : : , . : I • ] 

elndustr'ls '7MJ0'7BB.S9ai5J7 B11.88 BttJV 8KLU > 7IB.BS 1BM.7B ! 41.92 
' ! J ' . : (18/6) <II/1;7i) (2/7(62] 

H'meBnds. 67^5' G7J2, 67.90 SS.12> B7.B4* 68.12 60.27 1 66.67 ; — I — 

! I 127/61 (12/21 ! 

Transport- B15.M 5 1LM 314.U 317.00. 320.66 31B.27' IM.46 M2.7H ! M7.IB ' 12J2 

' ■ 1 , (7MI (21/61 \Jfl/4/81) (H/7/S2) 

Utilities-... 106J7, 106 JIB 106.17;1D6.E6: 107.70, 106.86: 11G.86 105.61 I 1B8J52 10 J 

1 ' ! I i (7/6) (11/1) (26/4/6B) • (28/4/42) 

TmdlngVol ' . ; J ! > I 

000-r 48, 92D'44,5BD '42,766- 47,000 66.2M j 46,90®! — — I — — 

' 1 1 I I I 1 • 1 

* Day’s high 804.70 law 7B3.1B 


July July July July 1982 

! B 7 6 0 High Low 

AUSTRALIA ' j ~ 

All Ord. (1/1/M) ! 44IJ 446.7 467 J | 4BB7 B96J (4H) 44L7 (7(7) 

Metal A Minks. D.’T/H) 1 218.0 2DS.8 114.2 - 616.4 426.1 (6/1) 6BM (7/7) 


AUSTRIA 

, Credit Aktlen (2/1/BS) 


BELGIUM < 

Belgian SE (31/12/tl) 62,71. 


4flW 40.66 48 . 77 ! 66J6 (4/1) [ 48.60 06(8) 

62.71 82.66 62.sJ 82.66 102^3(6^) 16. « (20/1) 


Indust'I dlv. yield % 


STANDARD AND POORS 


June 25 1 June 18 1 June 11 Year ago (Approx 


I DENMARK 

Copenhagen SE (1/U7I) I 108^6 100.68 110.04? 11048 12842 (t&/2) 10043 (1641 

FRANCE .1 

CAC General (31/1241) B7.S0 SB, 30 - 9640 111.6(124) 85.8 (4/1) 

Ind Tendance (61(12/81)! ids.80 1104 110.4 I 109.801 1244 024) 974(4/1) 


1 I . I ! 19B2 [sine* Cmpllfn 

• July : July July July June i June j ■ I 

! 7 | 6 j 2 1 1 30 1 29 J High LOW 1 High Low 

Slndust'ls _ 11946, 11B.B8! 120.141 122.d 123491 13748 i 116.41 I 16046 342 

■ ! I • j I (4(11 4/3) ka8/11/W (S0/WS2) 

tComp’s'te 1 107.22 10740 107.flfii 106.71. 109.61 110411 122.74 1 10740 I 140.62 . 4.407 


Induit'l dlv. yield % 


Indust'I P.’E ratio 

Long Gov. Bond yield 


NY. S.E. ALL COMMON 


j j (4m | ( 21,61 426/11/616 (14(32 
June 23 1 June 16 1 Year ago (approx 

0.89 I A97 j *85 , 


Rises and Falls 

t July 7 ; Jury 6 1 July 2 


116.63} 116.67) 116.64 1164 13049(2171) 1 160.120(4) 


July ' July ; July: Jufy ; : Issues Traded ;l,849 - : 1,830 ;l,796 

7 • 6 1 9 ! 1 1 High Low Rises — — .; 622 , 353 506 

1 . | Fails 765 1 831 857 

61.7D5l.7B61.0962.31, 7140 ;*l.70‘ Unchanged. 462 . 446 436 

1 i I i (VI) I (7/7) New Highs.. 1 19 10 


SINGAPORE f — . 

Stralte Times (IMS) ( *84.So| 888.M 0K.13 SIB Jfl (6/1) 667.46(9/3) 


SOUTH AFRICA 
Gold (MM) 
Industrial (IMS) 


— 3564 349.1 — MM (B/1) SftJ (7/7) 

- 6174 611.4 — 711.7 (B/Q M74 (26(8) 


MONTREAL 


New Lows .... 


i July July I July 1 July 
i 7 6 16 2 


99 I 103 i - 


Industrial* 2&S.H 282.43. 2B2J2? M243? 832.78 (4.1) 
Combined | 257.54 2S74fi[ 238.11 2374* 31648 (4,1) 


TORONTO Compoaltej ISM. 1664.61 156641 13624) 1M84 (4.1) 

NEW YORK ACTIVE STOCKS 


246.66 (21/9) 
28747 (21/6) 

102.2 (7(7) 


Change 

Wednesday Stocks Closing on 
traded price day 


Change ! 

Stocks Closing on 
Waded price day 


expectations of poor se 

quarter corporate eonziRgs. 


isJZr ...» takeover battle vrith- Banna 

Tbe Dow Jones uian*teiiai 

Average was off about 162 at JU3UnB * 


yesreroay roomnig at tnarket finished liquidity probtens; tfeatara sag. 

low M miia * ® ^ 

terms of an accord to end. its volume of 12 -Sm, * nan-quoted bank, dented 


volume of 12.5m, a nan-q noted banlq dented 

rumours, xnid-seata. but dealers 
o- , n , n said the Banking sector failed 

Singapore to rally. *nie Commmbink 

Prices dosed sli^itiy lower on Index fell to 6748 from 6824 
some selling in moderate turn- 

°« r - Paris 


GERMANY I 

FAZ-AkUan (31/12/66) 261.161 223JM 224.6 224 J8 26648 (6/4) 21846 (15(1) 

CommarzbankUteeiasy B7440] 6824 6894 696.7 >284 (6/4) 866.7 (18/1) 

HOLLAND 

ANP-C6S Gansral (1879) 664 &S4 864 M.4 864 (KM6) 644 (8(1) 

AHP-CBS Indust (1878) 684 68.3 884 6&E 744(18/6) 834(4/1) 

! 1 

HONG KONG . _ 

Hang Seng Sank (3 1/7/6 4 > 1262.24 ; 1 27148 1666.381 1266 J1 1446.32 (18/1) 1126.63 (8/3) 

Etartca comm Ital J1S72) 133.42 .1634B 133.48 15447) 21243 (IM) TH47 128 (B) 

! JAPAN** 1 

Dew Avenue (16/6/41) l8M7417nBS.11 7U19.S6 7881.il J*aj» (27/1) 6888^(17/3) 

Tokyo NawSE (4/1/66) | 62648j 626.88 628 4B 648.18 BS348 (27/1) 620,78 07/5) 


NORWAY 
Oslo SE (1/1/71) 


Giddlngs Lewis 1,129.700 2ft + IV IBM - 638400 51 + V 

Citicorp 781.900 2ft - 11* Eastman Kodak 654.400 72V V 


Tandy ....... 


Ma-Com live 


548,800 12V •- 1 


Disney 722,000 56>. - 2V Cent Illinois — 493400 19V V 

NLT — — .... 703400 38V — V Black Decker 483,100 13V •-* V 


h^rid SE (38(12/31) 3747 83.87 9848 3!,« 13748 (M) 8847(7/7) 

SWEDEN * 

J acobson *P. (1(1/681 fi 68.65 883. IS B87 .m | 6M.68 , 641^1(22/0 SCT42 (28(4) 

SWITZERLAND ^ „ 

SwtnBankCpnJ3l!l2/6a) 2374* 240.8 £41.1 2414 £83.1 (11/1) 246,8 (7/7) 

WORLD 

Capital IntL (1/1/78) . — 1 224 1234 1244 1474(4/1) 1234(717). 

[“) Saturday June 26: Japan Dow 730340. TSE 539.40. 

Baee vshms of at! imflcas ora 100 axcapt Austria* AH OnSsery end Mnfla ■ 
800. NYSE AB Comnoo— 50e Standard and Poors— 10: and Toruntu— IJXKb tbe 
last nainad based on 1975. tExdndlag bonds. #400 industrial*. 5400 
Industrial* plus 40 IJPIlxies. 40 dnanclala end 20 IftRsoom, eptoad 
u Uaivsliabla. 


mid-day and tbe NYSE All - PrteMt closed sliriitiy lower on Index fell to 6748 from 6S2X 

Common Index shed a . farther Tokyo someseilinghi moderate turn- 

.hf- t S£SS“^ftSS wc» dg»S Ig 0V S; e state nm« MMtrtal. P 3 ™ . 

tolaUed sHne 8m in the General Corpora- SftK)3 dood nrixea wteb k 

first half boor or tirftae. „Utarp^e^eSS tUm. Gentta*. Kepjel SMl^rt:. tligb* downwint bt» In doU. 

Analysts said the market also ^Kcparl-oriwited issues. and Straits Trading amiless trading, 

suffered from tbe continuing JTJ «... weakened 10 cento to S$3.06» Market analyse ssid many 

sell-off in bank stocks, -reacting J S Sg ssM > S$S ' 7S “ d ^ « VeSt 5? refflJ ^? <? ** 

to the failure of OWahoma’* : el LZ? , to w tively. , . . lines; discouraged in part ter tha 

Penn Square Bank. Itwest level smce March 17. Elsewhere losses of between near-rtoerd levels of the dollar 

™ r 1 TT71- - while the Tokyo SE Index shed x md 5 canls were recorded in against . the French franc ind 

Banks continued to lose $.46 points to 520^3, jn light Boustead, Haw Par, Muib. 0CBC continued concern over the 

ground, as they have since the trading; volume of 240m shares, and UOR. Government's fouth- month 

Penn Square unaummnt on _ aJd ^ te tD the Hotels, Properties and Com- Austerity measures. • 

S^i! U (Sa2 d^?faU Sme ta the^fternoon modi ties were jaarginally lower Decline le d adva nces by 89 
M7}. Cjae® 1 ® 14 to S2il, Chase new S sell orders in line with the general trend, to 80 in fhe French sector, with 

SC « 4 ^martcet indieatar ctoed off 

Northwest Bancorp U to ^ Malaysia 03fc 

and Interfirst 1| to SIS8- . afternoon edition «f a Mir^&rwratioii dropped 4 *■. v 

Hanna Mining slid 7* to 517* 55 m [o^S^ t Australia 

after a late opening. Norcen Eurobond market was in bad The Stock ExcJi ans e _ • Major mining and oil issues 

Enerp settled its takeover battle ^ European stocks were 5 f j®^ Co “2^J c,al Iade * dedined weakened again in active selling, 

for Hanna by agreeing to acquire p^, n g ^g ■ 2.86 to 518.04. Brokers said there were not 

an additional 1L2 per cent of the ^ . «iread rr T7 ' • . positive local or overaeas influ- 

company. or 1.25m newly-issued . ^ a °® rs Hone Konff eaces to Mem the seti-off- 

shares. for 845 a share. -® 1 ^ ™ ^ teSnSdi. tedi. 


2.66 to 518.04. 


impany. or 1.25m newly-issued . ®ie HoUC Koilj 

lares, for 845 a share. « Tokyo Market that one * 

Market researchers said the ^JJg in . G€nnan ^ “ Stocks dosed 

Defers said rantiment w 


Brokers said there were not 
. positive local or overares tafln- 
Jdong JtVOng eaces to Mem the seU-off- 

c . wok after a Market observers said a tech- 

B Stocks jxw J Dical ^ ^ exj>ecte(J in ^ 

tZ&JXZSh q nert. lhre^orfout .trading days. 


developments. Hopes were fart •nmnaO' was seiecuve w- but too slide wwdd resume. Tb* 

fading that U.S. proWems were dampened partly by esperta- f ?S^iiwSSo5 bottom of the market wtx*d prob- 

SanSory. More tavStars were tions that U^ mterert rates aWy be near 400 on the 'AU 

realising that second quarter would r™® ^ stienSh of Ordinaries Index, wfakh fell 5.4 

earnings had been under more Sony. Fujitns, Victor doU ar TheHang t0 443:2 yesterday, 

pressures than -anticipated and Matsushita Electric Industry and |ne “0^ ^ng ooiwr. jne ^*g 
would be disappointing while Steels led the fall, followed by Se°g Inhannesiblirff 

interest rates remained high, ffltechl, which Is the subject of a main JO * ianDCSI > ar S 


on turnover of some 2.4m shares. to Y840. mainly on rumours the raw ^ 

Matsushita Hectrlc shed YOT to W * a rights issue. g^ed W . cent. 

Qmada n* FUm y« to ^ oflScW , rtd 

Stocks were slightly lower in Mitsubishi Heavy Industries later that the company was lflat 146 Tivw- 

early trading with the Toronto f-uYlS to Y163. unaware of any pending rights 

Compete Index off 1.6 on .Uppri 738 to Y813 S I™ SSS 


Composite Index off 1.6 to 1,350.7, Nippon OH slipped Y36 to Y8I3 
Declines led the advances 86 6n S b *.iiin g in reaction to the 
to 16 on turnover of 577,626 sustained yen decline against the 
shares. dollar, and other Oils, Including 


ever; other Minings and Ftaan- 
dals were quietly firm wtimt 
traded. Be Beers rose 13 a* 423 
ahead of C80 diamond sales 


Closing prices for North 
America were net available 
for tills edition. 


sustained yen decline against the Germany ahead of CSO diamond salw 

ISftS&fmk K^a “ti also Prices dosed generaUye^J Jvm. Angloa tarn* 10 

“SppiTsteel and other big *&U* dosed flrm^whh 

tSSTJS^tS^^S Td^iSi continued leader Bariows up 15 at 680. 


CANADA 


[ BS.GIUM Coontinued) 


HOLLAND 


stock | JOW July J “ I '» SS* +“ *'*” 

amca inti iU.| i7, gafep— j;SS 

iSa-i SiV. ™ gsis^* 552 - I’:IH **Z fflfe- 

.... h..i mu sonna.— “,”°r ■■■■-— . UBn 


Prtoa + or. 
FIs. — 


| AUSTRALIA 

I •- July 8 


JAPAN (contbmad) 

Prlaa I +or ( Prtco j +or 

luiat.6 [ — July a . I Von - 


| 1 ANZ a roup -4 *.B -0.1 Kubota ogj 

ACF Holding—— 76.5 +0.9 Ac row Au*t — 1^0 “--ni;'- * fni 

Ahold- — 81.1 -O.l ArapolPat LIB Kyoto Ooraitite - 3.6OT 

AKZO 23.6 —0,1 Amoc. Pulp Pap 1.48 —0.13 Uon J*" 

ABN- *78 +0.8 JSdlmco 0.10 MaateOona.-- W5 

AMEV 87 +1 Rust. Cons. Ind— l.J» MoWte-.. 728 


L30 jKumgaal --- , - 

L18 iKyotoCoraiTito- |3,500 I —SO 


_t sii 

J 881 -4 


ABN; *™ 

AMEV 87 


1>8 r“"!|MaKlt»-.. 7?? 


AigomaStssI-:.;.! 23h 2Bis T*5 Ib +uT AMRO- +o*i AUtt. Guarant ..J !!* ru !2, n, axo Za 

&c s5s§ =sr SSSSSSfes Sj SaSSTS: wS £S« 5JJ j 

BAS 8S 553 VSassrzz ig « “ S:i KM:= Mf ^ 80068* S =i 

, l7u 1 ssx r™- ig, :SS sa HI *r- tiS SMSST.”::; ffl gr 

KvuSSblw Sii 14i* Euro Comm Trtlj 74.9 ;... Bl'vlUs Coppar- l.W -0.M T{ 

BP Canada...-.-; 221* 21U GtoLrBroosulsa..- 71 +04 Bram Mmlmts.- l.gg -OA1 Mbl*hl Rl East- 423 +2 

BrasoanA -.} 125* IS DENMAAK HelnoMn — 87 -02 Bridgo Oil - 2,28 -ysj MHIL— . if® -J 1 

Brfnco. 3.50 - 3.50 Hoogovans- 18.5 . + i'g BHP — .— 8-f® —0.16 cc. — 312 — 1 

B. C. Forest ; 7 7 Huntar Douglas- 8,1 +04 Brunswick Oil -. 0.16 Mitsui Rl EsL.^- 601 —5 

CIL Inc 18S* 18 Js July 8 Pries +Of , n t Mullwr 17.9 +0J CRA - 8.62 -0J» Mltsu+oshl »46 

CadlllacFalrviswi 6ig 95* * KLM S'Z ‘”2*S GSR — 2.48 +0*5 NGK Insulators- 44} +1 

CanCsmont- — 8H «*• " r~ Naardon^ 20,8 +08 Carlton * Utd 1.76 —OJ* Nippon Dahso..— 941 —8 

Can NW Energy^ *84s 221* i n S? w Sl!^** !»** ”7~ NatNadoart — 116.1 — OA CasttemaUMTiri *Ag Nippon OakW— S5° “ 1 

BalttcaStond.... 324 -1 Had Crad Bank- .98^ +1 A Cluff Oil (Aust) -. 0.46 -OJ» Nippon Meat 371 — 

Cop Hand alsbank 126 ------ Had Mid Bank— H4J3 +02 Do. Opts 0JB3 — NIdooii Oil 813 — * 

Can Packers— 285, M5* D.8ukkarfab 318J +M Had Uoyd 111 -06 Cookbum CwnL 1^8 -OJJ2 Nippon Shlnpan- 731 -11 

Can TTusco .. 20 TOU g“? l “5£ k --“ ^ « *53’ OcoGHntan— _ lOB* +3.5 Colos (CLJJ — ™ 2^0 Nippon meal 128 -7 

Can Imp Bank— 17J* 18 East Mlrti*—— 86J ,+OB OrnmotenCVanL- 81J +0^ OomaJco 1.72 — OJH Nippon Suisari— 220 +7 

Odn Pacific' 251, x9ia S ran f!! “2?“* 2n?*° ” lW Pakhoad 38 + 03 CostMn L.48 MTV—- 4,090 +1 

----- a - a - 1% EE «*»« ss =« S'Tf S ^ 


35.5 —dll SanK NivT- EEl -OJ7 Matn^Vta'E.. .. 969 —26 

29.1 Blua Matal 1.58 +0.81 Mta Elec Work*. 482 -* 

153 +0.6 BondHWaa.— .. t.00 — OlM M'blahl Bank-...'. 600 ....... 

121 Jl +0J5 2J5 M'blahicorp 42S -1 

74.8 ;... Bl' vlUe Copper.^ 1.00 — 0J»« M'blahl Elect...... 222 —4 

71 I +0.4 Bramblaslnd^- J.86 -~CA1 M’blahl Rl East- 422 +2 


Ball Canada • 17U lTlg 

Bow Valley.—— i 14U 141* 

8P Canada i 221, 21 U 

BrasoanA — } 125, 13 

Brfnco. 3.50 3.60 

B. C. Forast ; 7 [ 7 

CIL Inc 18!* 18 Jg 

CadlllacFalrviawi Gig 6S« 
Can Cement- — 84, 8<a 

Can NW Energy-] 234, 221, 




Price +or 
% — 


163 -16 

312 -1 

601 -a 


Can NW 224. ] 22>, | 324** =T 


67 -ax Bridge Oil - |^6 -rh MHI - 

15,3 +ID BMP J 6.80 -0.16 

8,1 +0.2 Brunswick Oil -. 0.16 — Mitsui W Esfc.—I 601 

J7.9 +0J CRA - f.62 -0J« Mtt»U~ko*hl J JMO 

87.7 -—1X3 CSR 2,48 +OJQ Hag Insulator*-. 441 

20.8 +M Carlton BUM 1.76 ~QM "" 

116.} — ®-4 CasttomaUMTys SAg 'OJ® Nippon Gakkl 


Can Packers.— 283* 283* D.sukkerfab— +oji Ned Uoy 

Can Tru*CD 20 204 Danska Bank. — Tno' OcoGHn 

Can Imp Bank— 171, 18 East A*^o_^_. 86J ,+OA o mm ate 

Odn Pacific'-. 251, xSi, Foranda Berygg. 819.0 —11.4 PBlcfKiec 

Can P. Ent, 13 13 FPrenede Damp. 401 — - 

Can Tire 331, 331, GNT Hldg — 230 ESSES 

Jydska Bank. — I 176 “In^oh 

I Chieftain 1 BlU I 2U, » +1 Sdame 

Comlnco.... 1 341* 34. !&S JS^SECsH *lff8 S 


1*25 Nippon uahso— 941 —34 

SJW ~QJB& Nippon Sakld 630 —1 

+1*6 CUlff Oil (Aust)-. 0.48 -OM Nippon Meat. 371 

+CL2 Do. Opts ■J 0^3 I 2«H .H. I Nippon OU v 813 

—O*® Cookbum CwnL 1^8 — (LB2 Nippon Shlnpan- 731 —If 

+8*6 Coles (GJJ — 2^0 Nippon Steel 128 -7 

+0^ Oomalco 1,72 — OJM Nippon suisari— 220 +7 

+ 03 Co-teln 1.48 mTCL .U.060 +110 

22.61 — OJJ Dunlop 0.9* — OJ1 Nissan Motor-— l 780 —11 

toS*! ■ ~°' n msaliln FTour...-.| 3M j ~A 

199.fi] —1 — t.t— i I ifln I — _9 


Chieftain ) 21U 213, iTbo Rodamoo. 124.8 -QA 

Comlnco. 1 34i* 34 Novo'^— r”;~ 1 (1 0 ° RoK— 194.7 -1.8 

ConstaMrstA. 148, 14M Rorsnto 163* +0.2 

Cent. Bk. Canada! 61, 61, Priwtttemken— . ixuj, Royal Dutch . B6 +0.4 

Coseka Res.- 1 3 60 3M }g. 6 “* 9 +0 - 7 

a& ***■ ta asf— — gy tti IS65?5lr i“. B 

n—lnra u nit i 155. 155. Superfos + US lit. _o 


Coseka Res • 3.60 f UH 

Costain-.—— 5k I 6 s * Smidth (FIl..— . 

DMDNII ! 2.61 2^5 ■ s. Barwidsen-.. 

Denison Minas.... | 153* 15V Superfo* ■ 

Dome Minas. [ 71, 74, 

Dome Pstroluem! 6.37 ! 8,57 

Dorn Foundries..: 28 i 271, 

Dorn Stores—; 13 J, 14 nAMrT 

Domtar- — ■ 181, ISA* rKANi* 

Falcon Nlckal i 33 1« 34 

Ganitar...— 107, 11 JulvB 

Gt West Ufa—! 2.03 2.05 ** 

Gulf Canada— ...i 135* 137, 

Emprunt <4K iff 


Unilever... — 144.6 —02 

viking Res-.-... 104 -2 

Vmf Stork..— 41.7 —03 

VNU 5B +0.5 

West Utr Bank- 72.3 +4 ■ 


HawkSW.Can-; ^74, | Em brunt 7E187U 6300 -20 “ r - - otter Expl— 

Holllngor Argua-I 26 125 ONE WL 3,270 +6 . , — 7= Pancon .... 

Hudson Bay MriBl 14J, I 144, ^ -** ‘ “ ~“* iS a Za a K Com'le — M^BO — -~ 

Hudson's Bay—. 16U « ESSSSXXZZ lSS3 =1 A BartOfll Fin— 98 -1_ SJSK&fl: 


Emprunt 7% 18 


Price + or ITALY 
Frs. — 

1,734 +30 Jut 

fi^OO —20 


Wsshln Floor..—, 33a -4 

(Lia Ntssiiln Steal. 148 -2 

tS ZSJ& — gg IS 

S =« 8Sa^=*B 

i IB lin n* Woneer™. 3,430 -30 

1.16 -0.M Rgmown™. 7IS +4 

o.vb, ......... *48 -i* 

j;TO Sanyo Elect |97 -6 

ifi ^siSCte-: S| 

SStsr- 2S =fa 

•eeeeesse 6*|*U lft) j|fl 

1JK) “-0JS Stanley— -!!-—! 335 +8 

NULUenk™ 1 2^8 +0.81 stoma Marine 219 —1 

New* 1.83 +0.03 TaUiMDensyo— 600 — . 

Nicholas Wwl. J US ~ Talsel Corp-T- 229 -2 

North Bkn H1IL, 1 ’ " “** 


tsr +• i:5a Zo’M 


1*5® +0.?]|Talir>o Ptoarm— J 67a 


CNEW. 3370 +6 

I Air Liquids....— — 468 —2 


748 +21 

3,690 -70 


sssacrar. A up rint - m p^-> i 3D 

Irruumo 381, 38ig BfC .470 

imp Oil A. 23 22i, Botiygues . — — 621 

In co 11 11 BSN Gervals 1,31 

In dal 91, fig Carrsfour- 1.43 

Inter. Pipe. 164, 161, Club Medlter--. 634 


BSN GervalsJI.— { l,310j —15 ( FlnsIder-ZZZ. 7. 


9ig Carrsfour 1.431 

161, dub Medlter--. 634 

CFAO — — 626 

CSF( Thomson)- 139 


Mac B/oedal. — I ISA* 16ig . 

Marks A Spencer] 7Sg 7B, 

Massey Ferg ! 2.59 2^3 ?*„°5H. Eaux 


Centra/* — — 
Credits Vareslno 
Flat 


in oon riui rMA/iiiu— „ 

“•ftS — Pioneer Co — 

2 07n ias Oueen Margt 

2,070 -182 Reckftt A Coin . 


Mclntyri MTn^Li 234 224 ^ Zn i 

Mitel Corp. 1211, 825a Oreusot Loire — 731 -oa 

Moore Corp 1 36 364 ®2si* ^chrI 

Nat. Sea Prods Ai 54* 63* °NEL - .^-SL^ 3 

Norand. Minn...; 111. Hi. g“^dirSiJ 


llT 36 . Invert - 1 

634 -4 rtalcementi 23,400 +400 

625 — 2 Montedison 87 +176 

139 —1 Olivetti 2,179 +19 

lfi6 PI rain Co 2,111 —109 

□c* * T5 c Pirelli Spa . .... 1,212 4 • 

5fo snia Viscose 625 -13 

73 =01 Toro Asslo 10,400 +20 

07.2*1 — SL8 4o. Pref 7,501 —69 


CKivi nuvAiiiMumiirt. ****** 

S'Sffi TYtT Santos 4-36 

3oJI 8k,lflh <HO l ' 0B 

2110 + i Southland M*n'g. 0JJ2 



TDK; 3,690 -70 

1A8 -O M TeUln-.-. 208 -2 

9-ii Telkotou Oil 845 —87 

1.17 -O M m 430 +g 

jj| So -i 

5S tSS5£5»” S *v 

“■ — ' SS tS^=z So U. 

?-i5 TOTO 401 

1-E£ '-8* 9S Toyo Balkan 428 +2_ 

2^9 Toyota Motor .840 —40 

l.TO Victor 1,960 -140 

“■« Wacoel. — 707 -10 

5*68 Yamaha 660 -10 

«'S3 Yamazakl 618 -2 

9-55 -®* 01 YasudaFIre — 231 

B.« -iSjG 2fi!SS8SJttS2ii&^2S*BiLe 


432 +1 

203 +2 

290 -11 

401 


Nthn. Telecom...! 46ig J 461* — rl. Ql 

OalewoodPet ] 94* 05* yg?™* j 81 

Pacific Copper— 1.1B 1.20 £ . 

Prara p - BX UHL, LPOrWld 1, 


1 46^1 

'..200 


Pan can Patrol....’ 65 
Patino 16 


Machines Bull .... , 


pfao^'ni'v i ii*. 12 ' I Metre i 1.410 —10 1 

as, I Mlchslln B 618 +1 I Bergen* Bank— 108 I +3 


NORWAY 


SINGAPORE 


Price I +■«■ 
Kroner! — 


! HONG KONG 


Prtael +sr 


QulSLfsfe - " 1 lm 1B5 Moot-Hen nesey= 726 ^13 Bofregaerd--- 108, 

Quebeo Strgn..-., 1.90 | 1.85 Moulinex..... 64 +0.4 Oredltbank. 131 

_ . Pernod 1 Hoard— 349 +1 Okem — — . — 48 

Ranger Oil... Bi§.l 6ig Perrier 162.6 —0.6 Koemos — 300 

Reed Stanhe #L...; Ill* | 111, P*ua*ot-I.A. 130 J3 +1 - Norek Hydra_-... 261 

RioAlgom 27 t 8 , 28 U ll* —2.8 Storebrand IBP 


5£rfi5S!9 h,A *- ; iii* Si? p«uaeot-a.A. . — 130.0 +1 .- 

SSSStSS^'ID in** »todlotoch-. 254 -6.1 

Royal Trueco A...' 12 12 Redout* ... . . 809 1 

Sceptre Res 6.50 . 5.50 Z , S ‘ == * 

Seagram — ■ fifllg 69>g RoussePUdaf 2B7 +2 

Shell Can OH J 161, 165, Skis Rasslgnol— B44 —2 

Steal of Can. A....! 16ig 169* Talameoh Elect. 726 


4.70 490 

2B5g 269* 

181* 18 
£21* 821* 

'll, 'S5 GERMANY - . 


SWEDEN 


JUlya HJCf + J M ‘ Boustead Bhd— .. 193 -0^1 

— Lr ■■ . Cold Storage 390 J-e.M 

Cheung Kong— 14.7 -0.3 g8»— : 7.60 -+.0JR 

Cosmo Prop 1.70 Fraser ANeavo- 6.80 

Crow Harbour.... 10.0 HaWPar—,.—-..— 395 — — — 

Hang Seng Bank. 86.0 -09 Inohoape Bhd — 2.01 r-0** 

HK Electric. 6.05 -D.16 MalayBanWng— 6.10 ■ -...- 

HK Kowloon Whl 4.47 —0.06 WjlayBraw..—.. 496- 

HK Land 7901 -0.« gpBO.-^ - 8,06 -OAi 

HkShanehlKk- 11.1 -0.1 WmeOarby 192 +0*1 

HK Telephone— . 30.26 — 0.7B rtrmlte Trg. 896 -0.1, 

Hutchison Wpa... 16.4 —0.4 UBQ ~ > 8.94 -OJZ 


(Jardlna MathL.- 16.0 I — 09 


* 

— 

193 

—091 

390 

4-B.M 

7.60 

•+.0JB 

6.80 

' M ^ 

396 


2.01 

-M2 

6.10' 

eeeeserae 

49G 


B.D8 

-oil 

199 

+OM 

696 

—0.10 

3.04 

-aja 



AGA — 194 -2 

At f e-Laval 204 

ASEA 185 +2 

Astra 440 +1 

Aba* Copco 109 ... 

Bollden — 163 

CeJIUtoea .216 +1 


Price ] +■ or I New Ylorid Dev, 


396 

6.36 —0.10 
6.90 — 0jD6 


SOUTH AFRICA 


SwtrePac A.. 11.0 -0.1 

Wheel' ic Mard /□ 5.46] —09 

VWlee/' KMar/D'w 4.6 
World Int. HldgeJ 290l — O.K 


Price + or CaJIriosa 

Dm. — Electrolux B— 

■■■- ■« — Ericsson 

4I4 +1 ‘ 6 

116.4 +1.1 -r— 


I JAPAN 


6.46 —OJO ' 

Q «1 Aberoom.. 

990 -Q.ia AC* Cl 

Anglo Am. 


Prtee +er 
Rend- - 


J5£n?fe= 41 ±1 

bayer" — — _ io79| ^a"i 


AUSTRIA 


BAYER 1079| -09 

Bayer+typo_ 200.fi -34T 

Bay er-Ve rein 27191 -09 8eeb-«»nla 


July 8 

Prlee 

% 

Oredltansta>t H .. 

209 

Landerbonk.. 

280 

Parimoomer^...-. 

261 

Samperit 

70 

Steyr Daimler... 

146 

Yeltscher.Mag... 

185 


j™ ^ i^kSfct m =i 

BMW- 197aj| —2.5 ||^‘fewidlL‘“ 

S2S J -1. swbZ:_ 


_____ AJtnomcto — 

+ 1 AmMda, 

— Asehl Glees— 

_1 Bridgestone 

3 Canon— . 

a_i Ottiaen— . 


sommarzoanx — 1329 —09 St Koooarbera- 262 —2 

Conti Gumml 409 +0.1 s^Th^cuA. 102 ^ 

*•"* — ss- 6 -M ^SSiSStSl: iw -1 

110 If* v °te>(Fr*s)ra 154 +9 

D'sohe Baboook.| 185 —2.6 

Deutsche Bank^. 260 —29 • 

DU Schulte 164 —1 


GHH — 178 


Hapag Lloyd— 


DUSchUlt 164 -l mli „ rL1 11L , JL 

Drasdnsr Bank... 131,7 —19 [ SWITZERLAND 


BBk±r=±-« =f 

Da/ NIppon Ptg- fOS — 1 

De]W»House (Fra —6 

Daiwa seltak.... ■ «0 -1 

— t 

Deal — ; 8X1 

Full Bank---*. „ 800 

Fubpum.—.-.. 1920 —40 


Anglo Am Odd... '889 +09 

Amgio Am tap. s .10 

1 BartowftaodJ- 690. +0.16. 

Priori 4- or tuttsi*. — *4.60 • --- 

Yen — . CNA Invest 696 .+O.U 

■ — ■ — Currie Flnaooe-J 2.16] 

§S. ■ DeBoers— —J 496] +JU, 

5S ^ Drtefbnteln .19.18. +0.14 

S zl FSGedukL.— 219 -09 

“5*. Gold Fields SA — 49.60 +WB 

§»* ““ HlghvaldStaeU.. 397 +091 

275 M.neHa ' 6.0 +0.1 


219 -0.8 

49.60 +04# 


Hlghv* Id Steel—. 397 +091 

Hulatts— 69 +0.1 

Kloof.. .23 — 

Nedbank - 8 

OK Bazaars 1695 

Protea Hltfgs-- 2.10 +09# 
Rsmfarant— W 0 — 

Rannlea— - - 3.70 +091 

Rust Plat 1.19 +091 

Sage Hldg.— 2.15 

SA Brews. 4.00 +09# 


63.^ +09 


BaeiUM/LUXENOOimfi |Kwvtedt 


Hoeehrt— 10 g ,4 +09 

H6«Ch 31.3 +0.6 

Hottmann CP) — 410 -1 Alusulst*-.™ 

Itorten.. — 1169 -09 Brown Bcvcrl 
Kali Und Srilz+.u. 146,5 —1 Ctba-Gelgy 


r . IWtessi: iw SSSS^—i 

I +or W50 +30 

'nT SS!SSli& i§! FtoAndil Kan 


16.9} ...... 

3.4gl ._. 


4161 —18 


H«*6hi — 
Hitachi KoW 

Ur>iJls 

mKxn Manse 


AROED- 1,040] 

Banq Int A Lux... 4,100 

Bekaart B 2.140 

CimentBR— 1940; 

Cocke rill llffl 

EBES 1,610 

Elootrobel.— 4,100 
Fabriqua Nat— 2.40& 
G.B. lnno-.^__. 8,560 
GBL (BruxL) —... 1^40 

Gcvasrt 1,710 

Hoboken 297Q 

Intercom — 1,300 

Kredietbenk. 4,848 


KSSfhOf .* 

KHD ; 

Pile* + or Kloeakner^— „ 

SX:— :■ 

1,040 —40 Lufthansa^ 

4/100 MAN 186 


do (Part Certs). 

Credit Suisse 

Elaktrowatt 


j 1 ' Fischer (Gao) .— ■ 396 ‘—4 Ho-Yofaib 
H Hoff-RochePtCts 63,750 —750 
=69 fteff^dho tito 6.878 -78 . 


Lies - 45 , SSSSteSd™ 

970 -20 

5-1 BSftz: 


.641 -IS 

428 

676 — U 
' 990' 

-7M +T" 

.276 —» 
'"381'. + 1 


F1a» octal Hand US»©.77} 
(Discount of 10&), 
BRAZIL 

-Jmy.« 1 wwl.Hk* 


| Manneematm ...„} 1209 3 


1/440 +10 Merewfos Hig— . 
139 +7 MetaltgesMlf..... 

l,6io -20 Muenol) Rueok— 
4,100 — ...... Preuwng— — . 

2,406 -10 Rh eli) West E/ect 

8,560 —10 Rosenthal. 

194S -40 scherlng— ... 


Intorfood^, 

Jclmoll 

Landis A Oyr— , 
Nestle. 


j_g noatio— 1 

—8 Oar-Bucbrle^ 1,001 

—10 Pirelli 21' 

-129 SandozCBL.. 3,86; 

— 1 Saddoz (PtCte). . 04 

SohlndloriPtCts) 27 

—2 SWIseafr +. 65 


l^t&5 —6 

760 

3,176 -16 


1,7-10] +5 | Sletnen.., £14.5 —29 I Swte® BaiikJ— .J 

297S +30 TliwseiU «.-1 8 I 9 I SriSltel^Sld 


^5° ' J«»«» » 

“ 6 . KaySmaL.— 

Sssscr 
=1° BS 

—29 Kcknyo— _ 

— Komatsu . 

Komatsu rift 

-9 Koribhmitai . 


« aai l +1 Acesfta 190 I 

«; W4 r +1 Banco BraS/L— 1698 -OJi 

- 398 -2 BelgoMln «*Bd- +09> 

— 2,380 +190 Brahma pp wtq +oja 

— . 686 tolas Amer ...... 690 ^ +aw 

— .326 r+5 Mano+smann OP 2.98 +091 

„ 600 +1 PetrobraaPP.-. 12 ii +0.12 

- 785 —6 SOUEB Cmx— 10 , 4 a -0.M 

_ 3S^ — JL Unlpar 690 — .... 

- 439 vaieRJoDoea— . 16901 -0.W 


454 -6 
■ 360 ^ 

«S. -7 


Tumowi Cr 19*L7»n. 

. _ J. VoMrk . 187,9m. . . 

Scurca: Wo d* Janeko SC* 


ivarte 14 a 

+38 Ivaba— 126 


J UIQ • 

+6~ 1 5w^a Voi ksblc.^t - 1 Pri est. -aW ' IKte page - av' sa' qufetd tm ' 

-09 lunton BanW--! 2,680 —30 tndMdUM ww h s n gae ;- wot mm last traded prkm. 9 P esHn fs 


Pen Hjdgs...— j 6,100] ....... I Voreln-WaBt— .— 257 — 1 

■HHeeeWmeea I Votkswsgvb— . 137 —2 


[Winterthur, 
[Zurich In*. 


^So SSmC 1 * *** iU *«‘ Hr* ■•*■**' 



31 


Financial Times ; Friday. July 9 1982 


and Markets 


LONDON STOCK EXCHANGE 


RECENT ISSUES 


Authorities again smooth path for base rate cuts 
Gilts make positive response but equities dither 


Account j&ealhig teles meats to FT Industrial Ordinary — —————— of the U.S. profit potential of its 

•Fim T.o-rf * share indea constituents: Glaxo 550 r- Zantac anfrnlcer drug helped 

A< £? unt 10 to a peak for the year Glaxo to rise 10 to a 1982 peak 

^ 736p, but ’Thorn . EM . of 736p. Following details of the 

An* in 7 -Aug Ii - -weAened again-to close IQ dowp IlKllftUlftP / sale of its industrial supply 

: ”}SUl “V* ' +J- operations in the UK, France and 

- aeptio . septll Sept;i group, another mdex; constituent, Dfnltnrc Ireland to Cadbury Schweppes 

- ” dMWnoa may take dropped. 4J to lOOp on irrterhn . Dl.UliClo / for £7,7nt cash, Reckitt and 

■ EK*"" 9,30 *” Two ****** resudts' deemed to be both die- ' / Column rose 6 to 290p. Transport 

- appointing and an unsettling 50 " Development firmed 8 to 73p. 

wito the authodties again influence for equity markets" • A / > * Elsewhere in miscellaneous in- 

rorootmag the path for the UK generally,' /\ 1/ dustrials, Peter Black advanced 

deanug banks to make a further Marked ■weakness early y ester- . /-i/— 10 more to 845p on renewed 

wuail reduction in base rates, day on WaH Street also urged . / V speculative buying while, hopes 

Government stocks resumed caution in London's after-hours’ A/ of likely benefits accruing from 

their recent advance in positive trading and the Stehare index / the rail strike left United 

fashion yesterday. London equity dtosed 3.S down at the day's. 350 — P Parcels 8 up at 208p. Johnson 

markets appeared set to follow lowest of 551.4; at 11 am, this ;/ Group Cleaners rose 7 ig 27Bp In 

the movement initially, but in* measure was showing a rim of / \J sympathy with an advance of 10 

vestment response later became 1.5. / - CT .enisoicc tuncv to 105p in bidders Sunlight 

highly deflective and many lead- ^ BL— A nUISS. iN>EX. ■ Services. BB and EA fell 5 to 

ing shares became uncertain. unnuiays gOOtl . 60p on the halved final dividend. 

Gilt-edged securities opened A ' resurgence of speculative J and deficit. 

confidently, reflecting easier buying fuelled by .revived talk 250' — Properties met a moderate two- 

short-terra U.S: .interest rates of -a bid from Hong Kong and .. way business and closed firmer 

overnight and uteding’s'-steadier Shan#iai Banking helped Grind-' . * a 8Q »982 f or choice. Baslemere Estates. 

penfonnancq yesterday against - **ys- to- feature the banking -- * ' -* preliminary results due on July 

the - dollar. Tbe Bank of sector with a rise of 13 to l8Sp. '15, rose 4 to 342p. Elsewhere. 

England’s move shortly before Awaiting probable reductions in .. . „ ^ rw.. ., ^ ■' tt,*^ x*™’* Carlton Beal Estates attracted 

1 am clipping toe iSmortanr base lending rates .and toe in- -““S “5* £ fre ®b speculative interest and 

band one StlwiSon rate in terim didhmed season, scheduled; £S, te *5 P Qt on 2 to a 1982 peak of 19ip. 

UK money markets augmented to start at the end of the month, £?**: ^ )stog at while BL P. Kent found support 

the Cone augmented ^ clearing banks «>e facing pnce of «p. m^Mdown toa MB kw ^ gaine d 4 to 57p. Trust 

Fre* inrertment funds were traded firmly NatWesrt rose 6 to to ' th f 5 a J p - £ 3 ®?P * fter ‘ L*!"? 1 ® 7 J? Securities Deferred firmed 3 to 

mmmUS <Smatari. : 437p as did Midland, 337p; the man^ <^amatic annual state- 20. Piessey attracted continued ^ but goftened 2 to a 

*m^ASsr&s Sr., «- *- «« - 

up best with gams, ranging to on _ J w Australian issues . "K.. s s Anwn on rk .._ , 


Insurance 

Brokers 


smoothii 

clearing 


to make a further 


wnall reduction an base rates, day on "WaH Street also urged 
Government stocks resumed caution in London's afteriours’ 
their recent advance in positive trading and the 30-share index 
fashion yesterday. London equity dtosed 3.8 down at the day's, 
markets appeared set to follow lowest of 551.4; at 11 am, tWa 
the movement initially, but in* measure was showing a rim of 
vestment response late^ became 1.5. 


highly Reflective and many lead- 
ing shares became uncertain. 
Gilt-edged- securities opened 


Grindlays good 

A resurgence of speculative 


-F.T.— .ACTUARIES. INDEX- 


confldently, reflecting easier buying fuelled by .revived talk 
short-term U.S: interest rates of -a bid from Hong Kong and 
overnight and oteding’s'.steadier Shanghai Banking helped Grind-' 
penforznancq yesterday against - toys* to- feature the banking 
the - dollar. The Bank of sector with a rise of 13 to l8Sp. 
England’s move shortly before Awaiting probatole reductions iu 
1 am clipping the important base len ding rates and the fir 
hand one intervention rate in twin* didfvned season, scheduled; 
, UK money markets augmented t0 start 0» end of the jnontti. 


meddum iSuS latter’s half-year figure are due ™ eat by touching 420p before . investment demand and toiiched lo ^’ for ^ year of ig 2 p. 

mes * Tnh ^ dosing a net 5 up at 415p. Lead- 483p but retreated later on p 

wi a gams ranging to J®i aai awifS,. ,/kHcK. Ing Buildings otherwise closed a profit-taking to colse 5 down on Qjjg j^etter 


ing Buildings otherwise closed a ' profit-taking to colse 5 "down on 
shade easier for choice as talk ^balance at 4S5p. Elsewhere in 
of lower Interest rates wore Electricals, Ferranti continued 


K r 1 >J£ me of NewSoutii Wales 3 to l47p. ' <rf lower Interest rates wore Electricals, Ferranti continued • Recently subdued Oils took a 
f wT." p 4 tl> i better. nc v/Zlc • Elsewhere, JamesLatham to attract a fair amount of specu- modest turn for the better. 

'Still refi^tiiig tr.S. bid shed 5. to 120p despite the re- lative attention on hid hopes but British Petroleum and Shell 

coupon .shorts lost ground on tiie Minet hardened a couple of tUjm proSubility, while John failed to hold the day’s best level adding 4 apiece to 270p and 390p 

^ -Pence room to l53p. Elsew^re ^ooih (Rolton) dropped 11 to of 825p. closing 5 up at 810p. respectively. Elsewhere, talk of 

fdndmg today could take the Insurances, Life iKues trade- 23 P foUowhag Ihe . Vmwial loss Bowtborpe fimed 12 at 277p as . a broker’s favourable circular 
form of a low-coupon issue. useful progress. Equity and Law divideM omission. Scrappy did George S choles, 372p. By helped Lasmo to rise 10 to 300p. 

a P‘- cia i l Se d - nature of putting on. 8 to 4^, Britannic gening ■ again left its maric^on way of cratrast, an almost total The Humbly Grove participants 

equitir business was illustrated 6 to 272p and Prudential 5 to sheffirid Brick, whach dipped to lack of support ahead of the came to life. Carless rising 7 to 
by sharply contrasting move- 243p. . ' .a 1982 low of 24p before closing figures due next month 169p and Marines 6 to 103p. 

I aMaiHnHHHMHMMHMmiHamai 3 down on balance at 25p, while saw ' Quest Automation drop 8 Candeeea, additionally stimulated 
. ' . . _ _ _ ... l-JPhoenlx Timber lacked support more to -25p.- which compares: by press comment, put on 11 to 

FINANCIAL TIMES STOCK INDICES T tip 4 to a 1982 low of with the 1982 peak of 140p; 212p r Jackson Exploration gmned 


by sharply contrasting move- 243p. 


FINANCIAL TIMES STOCK INDICES 


S^j. • Gresham House, a major share-: H) to llfip following a broker's 

Business in ICI remained w>in bolder, lost 5 in sympathy to seminar, but Goal Petroleum 


and the price drifted off to close 140p. 


shed 6 to 87p on the £5.5m rights 


Govcmmant Saot._J 70.02j 69.06 69.95; 694 
. Fixed IntafMt .f ;70.56j . 70.^8 70.*3j 7Q.3 


69.39 69.491 64.00 
69.99 69.851 86.15 
«.o5 549 .S 519.0 
i7jj 197.7| 314.1 
'.6 bI • 5.6 5( 6.16 


Industrial Ord ..1-551.4} B55JB 554.0 548.4 543 

Gold Minet j I86.61 188.7 . 295 jj 195.aJ 197. 


Ord. Olv. Yields. SJS 

Earning*, VI<L% (full) 11,5 
P/E Ratio (net) {«}„... 10.41 

Total bargain*. 13,03! 

Equity turnover Im. ■ — 


5.58 5.66 5.5S; 6;64j 5.69| 5 .65! 6.16 

KfulQ 11.67 11.62 11.661 11.80 llAll U.69| 18.35 

10.4S| 10.46 10.44! 10.31 10^1 j I0.3S{ 10.09 

13.033} 15.830 14^1 L 14,607 13 r 733| 13^30J 18,916 

r £nr. — j 193.87 j 133.53- 108.61 114,04} 188.931 133,83 


Cqnfty bargain*.-^..! - — \ 10,905 iju.Bratiq^oK 11,594* 10^60^14,469 

10 urn 566, Z. T1 am SG6.7. Noon 553.0. 1 pm 552.6. 

-- 2 pm 652.7. 3 pm 552.6. 

.Basil 1O0 Govt. Saca. 18/10/26. Fbnd Int. 1935. Induxnai Old. 
1/7/55. Gold Mines 12/9/56. S£ Acavrty 1974. 

Latest Index 01-248 8026. 

•NU-8.68. ' 


4 cheaper at 300p, but Amerebam Engineerings passed a dull issue proposal. Renewed demand 
came in for fresh support ahead session with the market still in a thin market lifted OJLE. 8 
of next Mondays results and nut apparently paying heed to recent to 255p. 

on 6 to 230p, while Allied Col- industrial surveys suggesting Among Overseas Traders, 
lolds, preliminary results due that recovery from the recession Inchcape continued to respond to 
July 20, added 3 to 2I3p. Bento- •wall be slow. TL recently weak recovery hopes and closed 8 
Ml gained 4 to a 1982 peak of on adverse comment, fell 4 to better at 280p. after 283p. Gill 
176p. 102p, while the associated and Dnffus also attracted support 

Stores attracted a fair measure British Aluminium cheapened a and firmed 4 to llfip. 

Of inouiry, but not much husi- couple of pence to 38p in sym- Shippings featured British and 
ness. The ‘leaders remain ed dull' pa thy. Reports of a broker's Commonwealth, which advanced 
and Gussies A cdosed 10 lower downgrading of profits estimates 13 to 453p in a restricted market, 
at- 47Qp, while Marks and for toe group left IMI 3$ cheaper Caledonia closed 11 to the. good 
Soencer gave up a few pence to at 50ti>. while Moss fell 5 to S7p at 413p. Movements elsewhere 
151p. Selected secondary following details of Biwaters were generally restricted to a 
counters made strong progress, share disposals. Edbio reflected penny either way. 

Courts Furnishers stood out fol- the chairman's profits warning A shade firmer immediately in 
lowing the excellent preliminary with a fail of 2 to 92p and Astra front of the announcement, 
profits and rose 12 to 82p, with Industrial gave up a penny to Imperial Group reacted sharply 
the A a similar amount up at 9p on disappointing results. following interim profits which 


HIGHS AND LOWS 


S.E. ACTIVITY 


the A a similar amount up at 

7Bn. PoDy Peck added 5 more to „ , - - 

352n, while good suoDort was GlaXO nS€ ■ toa revision of estimates for the 

again directed towards Cornell Foods made a firm showing for full, year; the liquidation of bull 
Dresses, 13. dearer at 183p. NSS the second day running, but Positions saw the shares down to 
Newsagents dosed' 4 better at quotations closed a shade below 9®P before elosmg< 4t down on 
llfip. but Lee Cooper finiW ied 5 the best in places as interest. ^f nce at 10 ®P- nevs £ad 
cheaper at lflOp. faded. Retailers featured Tesco apparent effect on other 

Among Shoes, dealings -in which put on S to a 1982 peak of Tobaccos, with Bats continuing 
David Scott were suspended at -68p, continuing the recent re- *“* e recentrecoveiy by rising 6 
13ip pending clarification of the rating. Tate and Lyle met more ta 438p - 


following interim profits which 
fell short of expectations and led 
to a revision of estimates for the 


[sinMOompIMt'nl 


Nigh 1 Low Hlflh ; Low 


* r-- -i-- ' — >-Da»y 

OavtiSoo*-; 76.40 1 l*7A 49.18 | 


Fbcwd Int-.. 


\rn -j _^n> j 0 nm win) 

70.57 I 68.79 | 150.4 50.53 j Bargain*!!!] 


(Ml*) \ (7/1) .(M/1I/47)' (i/1171) I Value 

594.0 . 518.1 ! 597,3 j- 49.4 

. (B/t) j (fi/h JIM/ll) OMlW) ; 

303.0 ] 181 J I 558.9. I 43.5 lEqui^M ' I 

(5/1) ! (12/ B) VOAIU) (!B/m71): Bargain*...' 


nan 191.9 
70.5! 77.J8 

850.4; .2694) 


167.11 163.7 


llfip. but Lee Cooper finish ed 5 the best in places as interest, 
dfaeaper at HJOp. faded. Retailers featured Tesco 

Among Shoes, dealings -in which put on 3 to a 1982 peak of 
David Scott -were* suspended at 68p, continuing the recent re- 
1 3jp p ending clarification of the rating. Tate and Lyle met 
couqniiy’s position; it way later renewed support and also firmed 


a II wan laitrr renews a suppon ana aiso nnoea -rv q aa __ _____ 

announced that a receiver had 4 , to 174p, while British Sugar ^ eers Sllrge aDeaa 
been appointed. dosed 5 dearer at 470p, after The much better than expected 

Thom EMI down npaln 475 P- Avana put on 6 for. a three- half-year diamond sales figure 

tnymtiimaOMiagain * gain of 20 to 318p. after from the Central Selling 


< V*iu*. I 241. 


The market yesterday re- 323p, while Slnglo revived and Organisation prompted a flurry 
mainefi convinced that Thorn added 2* to 37Jp; the latter's of buying interest in De Beers 
EMX-^ould announce a sizeable results are due soon. which surged ahead to dose 20 

rights issue with next Thurs- Buying on fresh consideration higher at 204p. Anamint, a sub- 


Brttixh Fund* 

Corpna. Pom. and 
Forefgn Bond*... 

1ndu*tri*l* 

Fin Bn chi I 9 Prop*. 

Oil* .’ 

Plantation* 

Minas 

Othars * 


Risas Rills Sam* 
1 72 2 17 


EQUITIES 


lt*U« § 3 |» E < 

price ga Sil 

»» IIV 


High Low I 


stantial holder of De Beers, put. 
on i to £23$. 

South African Golds got off to 
a weak start but rallied in line 
with the bullion price to close 
showing only small falls. The 
Gold Mines index eased 2.1 more 
to 186.6, extending the fall over 
the past six trading days to 17.1. 
Bullion closed §7-5 up at $314.5 
an ounce. 

Heavyweights sustained losses 
to I, as in Raudfonteln, £19$. 
while Western Deep dipped i to 
£10| and Kloof} to £10|. SL 
Helena, however, were finally } 
up at £ 104 , reflecting bear 
dosing. 

‘ In the cheaper-priced issues. 
Durban Deep gave up 16 to a 
year’s low of 525p. 

South African Financials were 
mixed. Gold Fields of South 
Africa rose 4 to £224 and Gen cor 
10 to 660p but “ Am coal ” dosed 
4 off at £104. 

Subdued throughout the day, 
London Financials picked up 
strongly in after-hours* dealings. 
Gold Fields ended 5 up on 
balance at 353. Rio Tinto-Zinc 
put on 4 to 367p and Charter 
edged up 3 to 198p. 

There was no respite for 
Australians which continued to 
lose ground in the wake of over- 
night Sydney and Melbourne 
markets. Bond Corporation lost 
2 to a 1982 low of 60p while 
BOM Holdings and Peko* . 
Wallsend eased a penny apiece to j 
respective 1982 lows of 143p and 

211p. 

The exceptionally active 
business in the underlying shares 
stimulated demaud for Imperial 
Group Traded Option positions 
and 1,357 calls were taken out 
following the announcement of 
the first-half figures. A sub- 
stantial amount of money was 
again directed towards* the 
August series, the 90s and 100s 
attracted 385 and -330 calls 
respectively, while 346 deals 
were struck in the November 
100s. 

OPTIONS 

First Last Last For 

. Deal- Deal- Declarer Settle- 

mgs togs tiori ment 

June 28 July 9 Sept 30 Oct 11 
July 12 July 23 Oct 14 Oct 25 
July 26 Aug 6 Oct 28 Nov 8 
For rote indications see end of 
Share Information Service 
Money was given for the call 
in Thomas Borthwiek, Aerow 
A, Rothmans International, 
William Press, UDS, Tozer 

Kemsley and Hillbourn, Shaw 
and Marvin and Guinness Peat. 
Puts were arranged in Ferranti 
and Inter-City, while doubles 
were taken out to UDS and 
Raybeek. 

RISES AND FALLS 
YESTERDAY 


« F.P. - 

Vf - 30/7 
« F.P- - 

*250 F.P.23/6 
145 F.P. - 
46 F.P.30/7 
190 RP.35/6 
16 F.P. 15 4 
1250 F_P. 4/6 
JSt 8 F.P.30/7 
150 F.P.2S/6 
187 lap F.Pl|25/6 

160 F.P. — 
{137 F.P.30I7 
|l05 - F.P. 2/7 
600 F.P. 2|7 
1160 F.P. — 
77 F.P. 14/7 
140 FJ>. 29/6 
T5 F.P. - 
W F.P, - 


824 82i*[ Antofagasta HWb*»1 881* 7.0 5.611S.1 2 A 

14 11 (Aroyll Poods WarrtaJ 14 ...... - — — — 


,48 44 Argyle Trust. .44 

280 260 Assoc. Heat S*rvlOBS|2B0 

46 45 Atlantia Rsa. Int. 45 

55 50 Balratow Eve* 5p 55 

101 92 *81ack<Mlchaan20p 92 

32 19 Cambrian ft Oan. 7lp 30 

435 293 fCont. Mlcrowava... 415 

59 52 ■ |>CcnoorB 58 

168 140 jiDruck Hldgs 188 

98 84 Elaotro-Prot. US60.50 90 

17 10 aGroiiplmr Option--. 12 

60 SO »KnlghtCmptrlnt6p, 60 
19S* 150 fi McCarthy &Stona,„ 192 


bB.0 2.1 4.6)14.2 


121 110 «Mllas 33 10p.,„ 118 

630 895 OrmamfiSA 10861^3)615 
155 150 ^Ollflald Insp.Srvc- 162 
97 88 •J'Radio City ‘A* NV_. B9 

1B8 160 Ruddle (Cu) lOp 183 

44 38 Walker (Alfrod) 10p.. 38 

90 40 (Zambia Con* Cpr 10K 50 



bl.61 2.6 4J 1S.0 
luS.O 2.4 4.712.7 

|blL25 SS 1^15.4 


bfl.3 ( 2.5 
UQ1JK2 8.9 
- i - ! 


i bQS5o2A) 
-U2.1 3.7; 
b5.6 U5 
bS JS 2.6 
-h>0.75 5.3 


0.9112.1 

3.8'>18.1 
4J11A 
d>.7 
4.5j 9^ 
2A17.4 
9.010.4 

2JB 7.1 


FIXED INTEREST STOCKS 


Issue 

price 

£ 

•JO. . D 

= 3 sis 

£ tf tf sTS 


<21 

Vi 

F.P. — 

1100 

F.P. 9)7 

^100 

£10 26/8 

w 

F.P. - 

101 

F.P. 30)7 

1100 

F.P. 9/7 

98.55 £25 8/10 

IDO 

F.P. — 

100 

FJ>. — 

B9.34B 

£26 — 

41200 

F.P. — 

4100 

F.P. — 

1100 

Nil — 


12 +« 


Hlghj Low 


60p 58p 
107 100 

11&4 101*1 
1451*130 I 
109 107 
101 921* 

£6 235, 

1007* lOOlg 
997* 997 b. 
258* 24 it 
47 58 , 

46 45 

7ppm>2ppmi 


Antofagasta 5.3® Pref.fCl) i 58p 

Benlox 8? Conv. Cum. Ra. Pf. -100 ■ , 

BoumemouthWaterfJX Red. Prf.’878gJ lis* 

nr*t Nat. 12ipc Conw. Um.Ln. 1987 „ 133 

■J*Lon&Contni^Conv.Sub U n «.Ln.' 85-02) 108 

Marlborough Propa.1DSCnw.Ln. , 9MaM| 92i<|-1 
Midland Bk. 14% Sub. Una. Ln. S002-07. 25 U + >« . 
Nationwide Bdg.8oc. 13jg% (3/B/83)..I1001 b— 3s 
Do. 14% i4f7i83)..[100>* 

New Zealand 14NS 1987 233* +u 

RIT ft Northern 4po Net Cum, Prf. Cl I 41 
Do. - 4.7pe Net Cum. Prf. £lj 46 

Rotaprint lUzX Cum. Conv. Red. Prafilppm 


RIGHTS” OFFERS 




Latest 



Issue 

-p2 

Renune. 

1982 

P 

Is 


High 

Low 

166 

F.P. 

9(7 6/8 

IBS 

188 

170 

FJ». 

13(6 24/8 

iso 

180 

174 

F.P. 

18/6 30/7 

234 

218 

25 

Nil 

_ 

2pm 

61 

1 P 

50 

F.P. 

24/6 13/8 

525 

F.P. 

17/6 30/7 

44 B 

380 

215 

F.P. 

6/7 13/8 

258 

243 

25 

F.P. 

10/5 10/6 

26 

24 


f|a 4* or 

;o. “* • 


ZS Nil — — 2pm 2pm jenk* ft Cattail 2pm 

50 F.P. 24/6 13/8 61 52 Pres* (Wm.l lOp ‘ 60 

525 F.P. 17/6 30/7 445 380 Saatchi ft Saatchl lOp 410 ...J 

215 F.P. 5/7 13/B 858 243 Sketohlay. - 259 +1 

25 F.P.I10/5 10/6 26 24 Young (HJ j 25 

RenimcfetlDo date usually last day for d sating free of stamp duty* 5 Roars* 
based on prospectus estimate, d Dividend rata pskf or payable On part of 
capital: cover based on dividend on iuB capital, g Assumed dividend and yield, 
t Indicated dividend: cover relates to previous dividend, P/E ratio based on latest 
annual earnings, u Forecast dividend: cover based on previous year's namings. 
F Dividend and yield based on prospectus or other official estimates far 1982. 
Q Gross, T Figure* assumed. 4 Figures or report swatted, i Cover allows for 
conversion of shares not now ranking for dividend or ranking only tor restricted 
dividends. § Placing price, p Pence unless otherwise Indicated. 7 Issued by 
tender. | Offered to holders of ordinary she res aa a ’’rights.™ "Issued by way of 
capitalisation. g| Reintroduced. H Issued far connection with reorganisation, 
merger or take-over. U Introduction. □ Issued to former preference holders. 
■ Aftotment letters (or fully-paid}. • Provisions! or pectiy-psld allotment Ima. 
* With warrants. tf Dealings under special Rule. i$ Undated Securities 
Market, tf London Lie ting, f Effective issue price eftar scrip, f Formerly, 
dealt in under Rule 163(2} fa), ft Unit comprising five ordinary and thres 
Cap. shares, - & Issued free as an entitlement to ordinary; holders. 


ACTIVE STOCKS 

Above average activity was noted in the following sucks yesterday 


Closing 
price Day’s 
Stock pence change 

Amersham 230 + 6 

BPS ’ 415 +5 

Bowzhorpa 277 t12 

British Sugar 470 + 5 

Davy Corporation 115 — 6 

Da Beers Dafd 204 .+20 


Suck pane 

European FarriBS 60 

Ferranti 810 

Gill and Duffus 115 

Grindlays Bank 188 

Imperial Group 100 

Tesco 58 


Closing 
price Day’s 


pence change 
66 +3 

810 !+ 5 


WEDNESDAY’S ACTIVE STOCKS 


Baaed on bargains recorded in SE Official Uat 


Wednesday’s 
No. of closing 


Wednesday's 


27 

1 

49 


price 

price 

Day’a 


pjice 

price 

Day's 

188 

203 

948 

Stock 

changes pence 

change 

Stock 

changes pence 

change 

138 

51 

323 

Fsrranti 

■ IB 

805 

+35 

Racal Elect ... 

10 

455 

+10 

32 

21 

54 

GEC' 

16 

E10J* 

+ h 

RTZ 

10 

363 

- 7 

2 

8 

16 

Plessey ; 

15 

490 

+ 13 

Beacham 

9 

270 

’+ 4 

17 

48 

91 

Thom EMI 

12 

400 

-10 

Cable & Wire 

S 

290 

- 8 

49 

44 

59 

BH Prop 

11 

394 

-12 

fisons 

9 

357 

- 3 



— . 

De La Rue ... 

10 

465 

-20 

Granada A ... 

9 

178 

>-11 

523 

37/ 

1.559 

Marks & Scan 

10 

154 

- 3 

Royal In* 

9 

335 

'+ 3 


FT-ACTU ARIES SHARE INDICES 

These Indices ire Hu joint compilation of the Financial Tones, the Institute of Actuaries 
and the Faculty of Actuaries 


EQUITY GROUPS 
& SUB-SECTIONS 


Thurs July 8 1982 



Figures In pamtinas-stow number- of W« Day's 
suds per section ™S e 


CAPITAL MOOS (209) 

Bunding Materials 123) — — 

Con tra cting. Cdnttruqttan (28) — ~ 

EkctricaftPD. 

Engineering Contncttcs (11) 

Mechanical Engineering (67)_._ 
Metahaad Metal Forming (ID— 

Motors sis— an»B 

Other' Industrial Materials (18)- - 

CflHSUMIkBROUP (202) 

Brewers and Dbtfffen (22)—— 

Food Man u facturing ( 2 2) — 

Food Retailing (14).,... — 

Health and Household products (9) 

AefaurefZS)... — . . .. 

Newspapers, PtMtaMng 03) — 

PmckaglnpandP*p*r(14) — 

Stores (45)- — — — 

Textiles ^3} ■ 

Tobaccos (3) ..... - 

Other Consumer (14) — „ 

OTHER dump’s (76) 

Chemicals (15) 

Office Equipmwt(4} . 
SMiffifogond Trenqurt (13) 
MbceRuraui(44> ’ 


FH 
July 
2 J (appro*) 


Index | Index I Index [ Index 
No. No. No. No. 


317 JS 
X19A2 
577 Jfl 

154123 
4tSJB3 { 432.98 j 47736 
19123 | 19638 j 19497 
K920 | 34737 
C6» I 8612 
35337 


2C4Z5 
6M3S 
46.74 
410.93 I 48735 
! 50434 
137.78 
27164 27426 
16229 36238 
B320 329J1 
26341 26136 
25017 20.71 
3&JZ 32837 
99 21 
54447 | 539.73 
S&H } 32634 



1027 
9443 
347J1] 36133 
299.06 j 27L93 
38241 




r~- ^ TiErni ri 8-. * l i 

I^ElMSS3 EZ3ES!lElzlE 1 <8 


263.97 

24739 I 22252 
27456 
135SS 
53X43 
289 JO 


28936 


65338 


328.94 


+0:7 
+0.9 

Dtscoua Mooses (9) Z*Wb +02 

■ Insurance (Itfe) (9) 270J5 +L5 

Insurance (Compos/te) (10) 154.77 — 

Insurance 8roters(7) — 519.0 +0* 
Merchant Banla (12) — 23ZB9 +W 

Praperty (49) — — ■— 39630 +03 

Other financial (15> U5.64) +L1 


6.77 - 26623 

US | — 15475 

1231 51SJZ 
6.71 I — 13127 

4JI& 2338 3946 

6.91 1 Cl2S 16538 


SM — 
IM 738 
9.01 833 


689 i — | 3Z536 | 




234,48 28477 
U134 378J0 j 23931 
34276 3SM 


32SJH | 321137 j 33M2 | 30737 


Thin Wed Year 

Ally M( aga 

8 7 UPPreO 



3438 
1452 ! 15.91 
1449 15.98 


15JB | 15JB I 1613 


NEW HIGHS AND 
LOWS FOR 1982 

. Tde fol low) no. quotations fn the Share 
IrforoviUoa S«rrtc» yesterday attained new 
Highs and Lows for 1982. 

NEW HIGHS (56) 

BRITISH FUNDS (10) 

Each. 9i*ne '82 Tran. 5oc *88-09 

Etch. B-'ujc -83 Each. 12<epc -90 

Tran. 12 pc v3 Funds. 5ipe t7-91 

Funds. Shpe '82-80 Tren. T2i«pc '92 
Excb. 1 1 t;PC ’S4 Each. 13bpc -92 
Exch. 1 1 ^ ’as Troas. I4«3>c -94 
Tran. 3PC '87 Each. 121-pC ‘9*. 

Transit. 3 pc "78-88 Tress. I ShPC -98 
Tree. Ititfc'19 

LOANS (SI 

FFI (UK) 5>:PCDb. Met. WSr. 3pc B 
7380-82 

Do. ftUpcDb. 81/8* 

AMERICANS n) 

Rockwell latL 

BEERS O) 

Young Brew. A Merston Thompson 

DO. Non-VtB- 

CHEMICA1S (2) 

RentoJcll Ammhtra Inti. 

STORES (1> 

Courts A 

ELECTRICALS (4) 

Ci-rttalate Plesrev 

Ferranw Sshole* :G. H.T 

ENGINEERING 0> 

■ T arm 

FOODS 17) 

Avana SafnsJnrrv (JJ 

Bishops Gp. A N-V Tavontr Rutiedtm 


Avana Sa/nshsrv (JJ 

Bishops Gp. A N-V Tavontr Rutiedtm 
Hiziwooc Foods Tesco 

Nichols rvimto) 

HOTELS (T) 

Grand mb*. 

INDUSTRIALS t9) 

Black (94 5mkhft Noohew 

Glato ‘ United Parcels 

L.R.C. IntL Wats oa (R. KJ 

Marl tog Inds. Zvpal Dynamic 

Sc. George's Group 

INSURANCE (1) 

Phoenix 

PAPERS (1) 

Bemroie 

PROPERTY (1) 

Carlton Real 

TRUSTS (2) 

Throg. Growth Coo. Tar. Im Ire. • 

OILS (1> 

ORE 


■ NEW LOWS (82) 

AMERICANS (4) 

Chase Manhitton Tesora Pa*. 

Cone. Illinois Texaco 

CANADIANS (1) 

B ~ 5Cin BANKS CD 

&N2 First Nat. Warrants 

BUILDINGS /SI 

Crouch CD.1 Sheffield Bride 

Phoenix Timber 

STDItES 15) 

Bakers Stores U* Coemer 

Casket <S.) SamneJ rHJ A 

■Currv* 

ELECTRICALS (4) 

Quest Automation Wistali {HJ 

Thom EMI 

ENGINEERING <7> 

Acrow A Hovrdon Groon 

Brit, AIunMilum I.M.I. 

I Brown UJ Moss Eng. 

' CarrCPn ' INDUSTRIALS <1J) 


BB A EA 
B. H. Proa. 
CSR 

CMfllHS; , 
Caravan tnti. 
Dobson Park 
Fogprtv (EJ 


Do. De«. 
Granada A 
Ldn. s M'^tand 
Pllldaotim Bros. 
StaaFumtWB 
TNT 


* o»4 jjj ulj» w^i L*y< hMp dares, laluet and canflfiucm changes are WJbllsMd hi Saturday leuei. Anew ng'cfcoisttoienis Is 

Thuej, findtM How; Ona» street, London, EC4P 4BY, pries 15^ by post 28p. 


MOTORS C4) 

A.E. Loos Inds. 

Kw'k-F* m “h* 

MOratTY R) 

Sriktorr Estalas Cvruon 

SHIPPING m 

Common Bros. Reordao Smith 

Ruud man tW.) Do. A 

TEXT IL ES (4) 

Gaskcll Broaffioora Stoddard A 
.Birtanh. „„ Iw 

TRUSTS (61 

CpckmT Japan Robceo (Hr.? 

T. & C. EnracnnC Do. Sot. _ 

Gresham Hovso ..Cmhm Tn*t 

OILS IS) 

Bcvkeler Eopln. Warrior Re*. 

Double sSSN Weeks (AastJ . 

LASMO ore. Weeks (SoroMdaJ 

OUshnra _ _ Do. Pf. {Avstir 

OVERSEAS TRADERS <2> 

Simp Dartrv MRchall Cots 

RUBBERS Cl 

Core, russ MataksE 

Highlands ft Lovrl'ds 

MINIS I10J 

Durban Deep Metals tx. 

TRGO M.l.M. Htd9E 

Manevalp Pete Wa'Hend 

Hm ruuiry Vohao Minerals 

Band Cpn. G ie va r 


WORLD VALUE OF THE DOLLAR 

Bank of America NT & SA, Economies Department, London 


Th# tabfo bafcwr glvsB tiro ruts tS making* lot tire U.S. dollar sgstnat various quotad an Imflcstira. Thoy are aot Irossd oti. and are not totsadsd id bo 
cumflcm i*d WadnMdsy, July 7. 1982. Th» exchange rates listed ussd aa ■ basis for, particular transaction*. 

V* . nUiH ra ms bawre sa buylPB snd aaffiag ratas as quoted brnwann Bank of America NT and SA does not undertaka to trade in eti listed 

cunvmcv^nrtit? n^^S *" ^ aotBd to n J°”! g " fawlgn curra nc lae, a nd neWier Bank of America NT and SA nor the Financial 

currency anna per one u.s, douer except to certain specified areas. AS mas Times assum e responsibility for enure. 


COUNTRY 

CURRENCY 

VALUE OF 
DOLLAR 

Afghanistan Afghani (O) 

Albania Lak 

68J35 

5.9109 

4.54 

Andorra— „ 

IFr. Franc 
~ ISp. Peseta 

6.9765 

113.105 

30.214 

Antigum 

- E. Caribbean * 
J Peso (f) (2) 

2.7026 

27000. 

Australia 

Austria 

l Peso (c) (9) 
-Dollar 

0.9867 

17.6776 

Azores 

Bahamas 

— Pert. Emu da 

85-425 ■ 
1,00 


Badiraln__^ 

Balearic is. 

Barglndash 

Barbados 

Belgium Iwu _. 

Belize 

Banlir. — 

Bermuda. 


— Diner 

rfar -1 

— Dollar 

i Franc (O 
’ 1 Franc (F) 


o l Franc (F) 

Belize Dollar 

Benin- .. C.FJL Franc 

Bermuda. Dollar 

Bhutan Ind. Rupee 

.Bolivia Peso 

Botsw ana — : — Pula 

Bnazfl Cruzeiro 

Brunei, Dollar 

Bulgaria Lev 

Burma, — Kyat 

Burundi — Franc 

Cameroun Rp CLF.A. Franc 

Canada Dollar 

Canary U._ 8p. Peseta 
Cape Varda la..,.,. Escudo 

Cayman Is. Dollar 

Cen. AT. Rap. C.F.A. Frano 

Chad_„ G.FJL Frano 

Chile Peso (0) IS) 

China Renminbi Yuan 

ColomM8» Peso (0/ 

Comoro* C.FJL Franc 

CongoP’ple.RBp.of C.FJL Franc 

CtetaWo. {g£j(0> 

ttib* Peso 

Cyprai — Pound* 

Czechoslovakia^. Koruna (0) 

Denmark Krone 

Djibouti Rp.of Frano 

Dominica & Caribbean 8 

Dom In. Rap Peso 

Ecuador. J S* er * < ® W 

— » sucre IF) 

Eoynt 4 Pound* fO) 

Jrr~Z 1 Pound* (!) 

Q Salvador Colon 

Eq*il Guinea Ekuele 

Ethiopia — Bin- (0) 

Faeroe Dan. Krone 

Falkland I*_ Pound* 

■ Dollar 

Finland Markka 

Prance- — Frano 

Fr. dtyln Af.„ C JJL Frano 

Fr. Guiana — - Franc 

Fr. Pac. Ly C.F.P. Franc 

Gabon O.FJL Frans 

.Gambia^ — Del as! 

Genrany [El _ Oetmark (0) 
Germany (W).- — Mark 

Shana.- Cedi 

Gibraltar Pound* 

Gr eece Drachma (6) 

G rear land. Dan. Krone 


0^77 

113.108 

22.365 

2,01 

4BJ05 

52J235 

2.00 

348.B2S 

1.00 

9.0246 

43.00 

1.1111 

172.76 

2.162 

0358 

7.8942 

BQ.00 

348.835 

1-26*6 

113.106 

54.70 

0.83 5 

548325 

848,625 

46.175 

1.0605 

63.84 

348.025 

346.825 

20.00 

38.129 

0.8363 

2X1515 

6.10 

8.685 
177.72 

2.7025 
1.00 
33 JOO 
59^0 
1.4286 
1.2107 
2.50 
226J1 
SJ0B48 
8.586 
1.7087 
0.9379 
4.79. 
6.9765 
348JS85 
6.0765 
125.B27 

548 .825 
2.341 
8^148 
2.5148 

2.75 
1.7087 

70.75 

8.685 


Grenada... 

Guadeloupe 

Guam. 

Guatemala 

Guinea Bissau....... 

Guinea Rep^ 

Guyana 

Haiti 

Honduras Rep. 

Hong Kong 

Hungary. 

Iceland. ;. 

India ■ 

Indonesia 

Iran. 

Irish Rep**"***" ‘ 

I era • I 

Italy. 

ivory Coast 
Jamaica 

Japan 

Jordan. 

Kampuchea 

Kenya. 

Kiribati 

Korea (Nth) 

Korea (Sthj 

Kuwait 

Lao P’ple D. Rep 

Lebanon^. 

Lesotho. 

LI borin 

Libya 

Lleohtenst’n. 

Luxembourg >..<« 

Maoao 

Madagascar D. R.. 

Madeira 

Malawi 

Malaysia. 

Matdive Is. { 

Mali 

Malta. i 

Martinique .... 

Mauritania 

Mauritius 

Mexico 

Miquelon 

Monaco 

Mongolia. 

Montserrat - 

Morocco. 

Mozambique ■ 

Namibia. 

Nauru Is. 

Nepal 

Netherlands. 

Noth. Anfles — 

Hew Zealand 

Nicaragua^... < 

NJgor ffP- i -i- - 

Nigeria 

Norway 

OnamBuIttowte of I 
PeUstan 

Panama : 

PRpua N,G,„ i 

Paraguay- < 

Peru. ! 


. E. Caribbean 4 
. Franc 
. U.S. B 
. Quetzal 
. Peso 
.Sy fi 
. Dollar 
. Gourde 
. Lempira 
. Dollar 
. Forint 
. Krona • 

. Rupee 
. Ruplati 
■ Rial (O) 

. Diner 
. Punt* 

. Shekel 
Ura 

C.FJL Franc 
> Dollar 
Yen 
. Dinar 
Riel 
Shilling 
Aust Dollar 
Won 
Won 
.Dinar 
Kip 

Pound 
Loti 
Dollar 
Dinar 
Sw. Frano 
Lux Fruio 
P ataca 
Franc 

Port. Escudo 
Kwacha (3) 
Ringgit 
Rufiyaa (0) 
Rufiyaa (M) 
Franc 
Pound* 

Frano 
Ouguiya 
Rupee 
Paso 
Fr. Frano 
Fr. Franc 
Tugrik (O) 

E. Caribbean 9 

Dirham 

-Matiea 

S.A. Rand 
Aust Dollar 
Rupee 
Guilder 
Guilder 
Dollar 
Cordoba 
C.FJ. Frano 
Noiret (O) 

Krone 

Rial 

Rupee 

Balboa 

Kina 

Guarani 

Sol 


VALUE OF 
DOLLAR 


2.7025 
6.9765 
1.00 
1.00 
40.6866 
22.8264 
3.0418 
/’B.00 
2.00 
5^45 
35.7484 
11^25 
9.6246 
657.00 
81.09 
0.2953 
1.3618 
. 24.88 
1409^3 
348,825 
3-7835 
259.325 
0.2818 
n& - 
11.042 
0JI867 
0.94 
740.80 
0.2883 

10.00 
5^25 
1.1588 
1J» 
0,2961 
2.1428 
46.006 
6.1798 
364.65 
85.426 
1.1148 
2JT73 
3^3 
7^6 
697.65 
2.3634 
6. 9765 
51.29 
11.16 
48^6 

6.9765 

6.9766 
3.3S66 
2.7025 
6.1846 

30^788 

1.1588 
0.9867 
13.20 
2.7735 
1.80 
101586 
10j05 
348.825' - 
0.6803 
6^96 
03466 
22.1478 
1.00 
0.7439 
126 J)0 
681.37 


VALUE OF 
DOLLAR 


Reunion lie de la_. Fr. Franc 

Romania Leu (O) 

Rwanda. Franc 



Vatican 

Venezuela 

Vietnam 

Virgin la. Br_— 
Virgin la. U.S.- 

Yemen 

Yemen pdr 

Yugoslavia... 

zaire Rp, 

Zambia — 

Zimbabwe^ 


.Vatu 

Aust. Dollar 
. Lira 
.Bolivar 
. Dong iO) 
UAS 
■ UA ¥ 


.zaire 

. Kwacha 

. Dollar • 



Ijf. Mot available, (m) Market rate. * U.S. dollsra per Nations! Currency unit, (o) Official rtte. (c) Commsrcial rste. (f) Financial rate. (1) Egypt — Rcstlna 
rate fc«d daily by Central Bank of Egypt for Importers, Exporters, Tourists. (2) Argentina— devalued by approx. 17 per cent E/7/82. (3) Malawi— da veined 28/4/82! 
(4) Ecuador— devalued by 32 per sent. 14/5/B2. (6) Chile— devalued 14/6/02, to be adjusted downwards by 0.8 par cent monthly for the naM 12 months. (8) Greece 
— devalued by 35 per cent '15/8/82. (7) Pmtugsl — dsvslved by S.5 per cent 15/S/82. (8) Turkey-devalued 14/6/82. (9) Argentina adept* two tier system (o) com. 
(nereiel, fixed duly .for imports and exports; (I) all other transactions, set by market. 
























































































CURRENCIES and MONEY 


Dollar resists fall 


THE POUND SPOT AND FORWARD 


ipmd Ciomm On* month 

1 .-7070-1 .7160 1.7075-1.7085 0-41-0.46C 
2X000-2X120 2^055-2-2066 0X0-1 .00c «U»- 
4.73-4.764 4.734-4.744 14-1 4c pm 

81 X5-82.2S 82 . 00 - 82.10 13-23C dls 

14.82-14X74 14X2-14X3 ' 24-Sore dis 

1.243S-1XBM 1X490-1-2600 0.65-0. 77p dis 
4.2844X2 4-294-4J04 IVIHpf pn* 


Hie dollar recovered from a 
weak start in European currency 
trading yesterday. There was no 
obvious factor to account for the 
late demand for the U.S. cur- 
rency. other than the already 
known influence of high interest 
rates. Eurodollars eased yester- 
day. 

The pound was firm, despite 
the decline in London interest 
rates. Nervousness about inter- 
national monetary and political 
stability kept sterling steady. 

DOLLAR — Trade-weighted 
index (Bank of England) 122L4 
against 122.7 on Wednesday, and 
107.3 six months ago. Three- 
month Treasury bills 12X0 per 
cent (1UB6 per cent six months 
ago). Annual inflation 6.7 per 
cent (6-6 per cent previous 
month) — The dollar rose to 
DM 2X165 from DU 2X135 

against the D-mark, the highest 
level for 11 months; to a record 
FFr 6.9950 from FFr 6.9790 
against the French franc, after 
touching FFr 7.0010; to SwFr 
2.15 from SwFr 2.1490 in terms 
.of the Swiss franc, the highest 
since September last year; but 
eased to Y258.12) from Y 259X5 
against the Japanese yea. 

STERLING — Trade-weighted 
Index 81.Z against 91.0 at noon, 
91.1 In the morning, 91.1 at the 
previous dose, and 91.8 six 
months ago. Three-month inter- 
bank 12ai per cent (15 A per 
cent six months ago). Annual 
inflation 9X per cent (9.4 per 
cent previous month) — The 
pound eased 5 points to $1.7075- 
1.7065. It opened at S1.70SO- 
1.7090, and touched a peak of 
SI .7140-1 .71 50 at lunch, and a 
low of $1.7070-1.7080 in the after- 
noon. Sterling rose to DM 4-30 
from DM 4X950; to FFr 11.95 
from FFr 11.9250; to SwFr 
3.6750 from SwFr 3.6725; but 
fell to Y440.75 from Y443. 

D-MARK — EftlS member 
(weakest). Trade-weighted index 
124.0 against 124.1 on Wednes- 
day. and 122.6 six months ago. 
Three-month Interbank 9X25 
per cent (10X5 per cent six 
months ago). Annual Inflation 
5J8 per cent (5.3 per cent pre- 
vious month) — The D-mark 


showed a firmer trend at the 
Frankfurt fixing in quiet trad- 
ing. Uncertainty about future 
trends may have led to some 
profit taking in early trading; 
with the dollar falling to 
DM 2X070 from DM 2X145 el 
the fixing without any interven- 
tion from the Bundesbank. 
Later in the day the U.S. cur- 
rency recovered to DM 2X135, 
although the D-mark was gener- 
ally stronger as rumours about 
liquidity proWems within the 
German banking system ceased 
to dominate market sentiment. 
The Swiss franc faU to DM 1.1729 
from DM 1.1742 at the -faring , 
and the French franc to 
DM 36.015 per 100 francs, from 
DM 36.035. Sterling was un- 
changed at DM 4X960. 

ITALIAN LIRA — EM5 mem- 
ber (strongest). Trade-weighted 
Index 53.5 against 53.4 on Wed- 
nesday. and 55A six months ago. 
Three-month interbank 20* per 
cent (22} per cent six months 
ago). Annual Inflation 15X per 
cent (unchanged from previous 
month) — Trading wound down 
very early in Milan yesterday, 
as the market's attention focused 
on the World Cup match between 
Italy and Poland. Earlier in the 
day the lira was generally firm, 
rising against the dollar, sterling 
and SMS currencies, influenced 
by seasonal factors including 
better balance of payments 
figures and ■ a rise in foreign 
exchange reserves during the 
Toucrst season. The dollar fell 
to LI ,404.45 at the fixing from 
the previous day’s record high 
of LI .409.45. 

FRENCH FRANC— EMS mem- 
ber (third strongest). Trade- 
weighted Index 73X against 73X 
on Wednesday, and 80X six 
months ago. Three-month inter- 
bank 14 A per cent (15 per cent 
six months ago). Annual inflation 
13X per cent (13.9 per cent pre- 
vious month) — The franc re- 
corded mixed changes at the 
Paris fixing, improving against 
the dollar and sterling, but 
losing ground to the Swiss franc, 
Japanese yen, the D-mark, Italian 
lira and Dutch guilder. The 
dollar fell to FFr 6.9630 from 
FFr 6X695, and the pound tq 
FFr 11.92 from FFr 11.9290, 


U.S- . 1.7030-1.7160 
Canada 2X000-2X121 
Nothlnd. 4.73-4.764 
Belgium 81.85-82.25 
Danmark l4.82-14X7 I z 
inland 1 .2455-1 X5M 


IV-ftcpm 
13- 23c dls 
2V3ore dis 


Portugal 144X0-146.00 145.00-146X0 S0-266edls 


% Three 

p .a, months 

—3.06 1^2-1A7«fl» 
—5.17 2.70&XOdb 
3.48 44b pm 
-2.63 54-64 db 
-2.07 lOV-IZUdb 
-6.82 7.9S-2.1fldls 
3.54 3V-3 1 . pm 
-14.25 220-7564 b - 
-11.03 520-5S5dte - 
-7.24 47-62 db 


Spam , 192.50-193.50 192.85-183X5 186-190© db MX* 

Italy 2. 40D-2. 410 2.402-2^404 13-16 lir* die- “7.24 47-62 db. 

Nonor 1 0X1-70X6 10 . 94V1 0.9ft 3V4*oredis} “4.11 1TVJ***£» 

Franca IIXOVUXS 11 X4VHXS4 1-3c db j 
Sweden: 10X8-10.62 10.aVlO.5ft 1M« dls - J JJ 

439445 44QV44-P, ft-1Vypm fA5 

30.10-30X0 30.12-30.17 12 Vftgro pm 4^ 3ft^2ft pn 

3. SB-3. 69 3.B7-3.88 2Vftc pm 7.78 7-6H pm 


439-445 440V44-P, ft-1\ypm 

id 30.10-30 JO 30.12-30.17 12Vftgropm 4 ^ 3^34 pm 

3.65-3X9 3.B7-3.88 2Vftc pm 7.78 7-ftpm 

Balaian rata b for convertible franca. Hnanelal franc 88.7588.88. 
Sbc-month forward doltor 2X9-3 ,04c die. .12-month 5.07-5. 22c die. 


-2.01 SVIO^dta ■ 
_1J4 5VSdb ' 
5 AS 5Vft pm 
4J8 32V284 pn* 
7.78 7-ftpm 


THE DOLLAR SPOT AND FORWARD 


UKt 1.7070-1. 7075 1. 7075 -1 .7096 0.40-0.48C db 

Iralandt 1X7D0-1X7SS 1JWMJ7« OJO-OSOcpm 
Canada 12HS-12XO 1X900-1. 3910 0.17-0 .20a db 
Nothlnd. 2.7925-2.7750 2.7720-2.7750 1,60-1.500 pm 
Belgium 47X048.04 48.02-48.04 4-2c pm 

Denmark 8.6800-8.6776 8.6728-8.6775 0 JH) XScre pin 
W. Gar. 2J5040-2X175 2X180-2.5170 1^2-1 J7pf pm 
Portugal 84.7D-86J0 86.OS-8SJ0 30-130ecfls 

Spain 112.70-113.il 112.75-112X5 70-80e db 
Italy 1,402V1A07«* 1/406-1>407S 4 Vft lira dla 


Italy 

Norway 

France 

Sweden 

Japan 

Austria 

Switz. 


% Three % i 

p.s. months p.a. 

-3.06 1A5-1J5db -3JS 
XSS 1 JO-1.05 pm 3X8 . 
-1.72 0j454.48db -1.46 
6.73 4.62-4XZ pm 6.61 
0J5 7-3- pen 0.42 

1.07 1.004 JO pm OJS 
6.85 4.13-4X8 pm 6X2 
—11.28 70-370 db “MJ4 
■—7X8 205-235 db -7X1 
-4.48 16-18 db —4X5 


8X925-8.4020 6XS50-8X9B0 O.BO-OXOora db -1X1 IXO-IXOdb -1X6 


6X560-7.0010 6X925-6X97S 0.70-OJOc pm 
6.186043.1970 6.1890-6.1920 0.60-0 -SOots pm 
257XD-2S9.25 268.O0-2S8J5 1.89-1 Xly pm 
17.64^-17.87 17.66V17.67 11V10»4flfO pm 


0.77 0.70-0.20 pm 0X8 
0X7 1 .75-1 .65 pm 1.06 
8.60 6.46-5 JS pm 8X7 
7.88 3ZV2ftpm 7.03 
11.(2 5.88-6.61 pnr 10X0 


rid 17.64^-17.67 17.68V17.67 11 V10»4flro pm 7.38 3ft-2ft pm 

a. 213X0515.10 214.95-215.05 2.01-IXOc pm 11. (2 5.88-6.61 prrr 1 

t UK and Ireland ars quoted In U.S. currency. Forward premium* and 
discounts apply, to the .U.S, dollar and not to the Individual currency. 


CURRENCY MOVEMENTS CURRENCY RATES 


Bank of Morgan 
[ England Guaranty 
, Index Changas? 


IBank! Special |Europ«an 
rate i Drawing i Currency 
I X Righto i Units 


Sterling ~ 

UX. dollar^ 


Canadian doner— — al-6 

Austrian aoMRng» llfX +2 ®: 7 

Belgian frane~— . 94.6 —1-7 

Danish kroner. — six* — 14X 

Deutsche mark-.— 124.0 +48A 

Swtwfranc — 143.7 +94.4 

Guilder , 116.3 +23 A 

French franc _ 73.3 —20.4 

liw , 53.6 — 5B4 

Yen.. 132.0 +23.7 

Based on trade weighted c han g es from 
Washington agreement December. 1971. 
Bank at Baglabrf indax (ban own ga 
1975 ■>100). 

OTHER CURRENCIES 


Starling.—— I — 

UX. 8 D 18 

Canadian 8..J6.5I 
Austria Schi 
Belgian F._J 14 
Danish Kr._ XI 
D markM — 71 

Guilder.. 8 

French Fr._. 9i 

Ure - 19 

Yen Si 

Norwgn. Kr. 9 
Spanish Pts. 8 
Swedish Kr. 10 
Swiss Fr. ' 61 


0.638626 

1.06539 

N/A 

19.1131 

61.8513 

9.40383 

2.71606 

2X9612 

7.64364 

1521.62 

280J27 

6X3370 

122.157 

6.71968 

2X1629 

N;a 


Greek Dr'ch/ 20b n;a 1 
Greek dr'ch (n/a) 68. 44 42. 


0X50699 
0X42796 
1.2X206 
16X168 
45X1B9 
8.16933 
2X6312- 
2.60730 
6X6233 
1524.16 
1242X64 
; 6.03948 
; 106X19 
1 6.B3591 
I 2.01617 
I N/A 


EMS EUROPEAN CURRENCY UNIT RATES 



ECU 

Currency 

amounts 

.% change 
from 

*4 change 



central 

against ECU 

central 

adjusted (or 

Divergence 


rates 

July 8 

rate 

divergence 

limit % 

Belgian Franc 

44X704 

45.2189 

+0X5 

+0X4 

-MX501 

Danish Krone ._ 

8X3400 

8.16933 

-0.79 

-1.00 

±1.6430 

German D-Mark 

2X3379 

2X6312 

+1XS 

+1.05 

-*-1.0888 

French Franc ... 

6.61387 

6.66Z33 

-0.78 

-0.99 

->-1X940 

Dutch Guilder ... 

2.57871 

2.60730 

+1.07 

'+0.88 

±1.5004 

Irish Punr 

0.691011 

0.686169 

-0.70 

-0X1 

->-1.6688 

Italian Lira 

1350.27 

1324.16 

-1X3 

-1X3 

±4.1369 


Argentine Peso... 
AuetraHaDoUer..., 
Brazil Cruzeiro... 
Finland Markka- 
Greak Drachma^ 
Hong Korn Dollar 

I ran Rial 

KuwaftDtnaltKD) 
Luxembourg Fr„ 
Malaysia Dollar.. 
New ZaaiamfDIr 
Saudi Arab. HlyaJ 
Singapore Doller 
Stfi African Rand 
UJLE. Dlrham.-J 


T34X22-34X62 
2.6S80-L6890 
300.15-301.16 
8.1744X.1844 
120.43-120X6 
10.15-10.161g 
*146.40 
0.45288 -a,4fl«a 
82X0X2.10 
4X5b^.061« 
1X945-2.3266 
0X86563935 
3.69 b -3.70 b 
1X834-1.8868 
6X8103X900 


T2 0.03 0-20.070 
0X8673X871 
175.40-176X8 
4.78004.7820 
70X0-70.40 
5.94-6X411 
* 86.00 

1 OXUIB-OXMU 
48X2-48.04 
8.3705-2X730 
1X66S-1X583 
3.4395-3,4415 
9.16052.1630 
1.1698.1,1612 < 
3.6720-5.8740 | 
• Selling rata. 


Austria^ 

Belgium 

Denmark 

Franca 

Germany.. 

Italy 

Japan 

Netherlands..... 

Norway. 

Portugal 

Spain. 

Sweden..,. — 

Switzerland 

United States... 
Yugoslavia 


30X5-30.35 

88.6088.70 

14.79-14X3 

11X7-11.97 

4X7b-4X2!g 

23702410 

443-448 

4.72-4.76 

10X0-11X0 

143-168 

184V19SV 
10.55-10X6 
3X4bX.68b 
1 1.70-1*72 
, 80 b -95 b 


Changes ate tor ECU. ttiereiore positive change denotes a 
weak currency. Adjustment calculated by Financial Timas. 

EXCHANGE CROSS RATES 


tRata shown for Argsnttna t* ca wwitercW, Hnanoial -retoc 66,452-56.492 against 
curling: 33, 000-33, CEO agamal dollar. 


Pound St»rUng| UX. Dollar ] Oautsohem’k] JapaneseYeni French Franc] Swiss Franc jDutoh Guild 


Pound Sterling 
UX. Dollar 

Deutochemark 
Japanese Yan 1.000 

French Franc 10 
Swiss Fra nc 

Dutch Guilder 
Italian Lira 1,000 

Canadian Dollar 
Belgian Franc 100 



Iglan Franc 





FT LONDON INTERBANK FIXING (11.00 a.m. JULY 8) 


3 months UX. dollars 


6 months UX. dollars 


bid 188(4 offer 157(8 I bid 161/8 offer 16 1/4 


The fixing rates are the arithmetic mea ns, rounded to the nearest one- 
sixteenth, of the bid* and offered rates for $10m quoted by the market to five 
reference banks at 11 am each working day- The banks ars National Weatmtoata r 
Bank, Bank of Tolgn, Deutsche Bank, Banque Nationals do Paris and Morgan 
Guaranty Trust. 


EUROCURRENCY INTEREST RATES (Market closing Rates) 

U.S. Canadian Dutch Swiss French Italian Belgian Franc Danish 

July 8 Sterling Dollar Dollar Guilder Franc D-mark Franc Lira Cony. Fin. Yen Krone 

Shortterm .„J 125,-l2lT7 Mb-MsT I5i a -16b 9b-9b 2b -3 8-81* 147 8 -15b 16-20 13b- 14b 14lg-14b 6b-6b 9b- 11 

7 day's notice. .J 12b 12b I4H-14&B 17-18 9b 9b 2b-3 a*-8b 15-16H 18b-20 13b-14b 14b-15 6ft-6b 12b-14 

Month I 12J 2 12* ;i5rir-15* 17Ja-17* 87 S 9 4*4* 8«X» I4V15 ISbXOb 34b-15b 15-J5b ,67 4 -7 15JB-167# 

hreo months., Wh-lS* 16i-.15b 17b-177 a 9* 9* 5-5b 9b-9b lSle-lBb 203g-21 14b-15»« lBb-lSb 7b-7b 15T g 17S# 

-lx months I !2A-l2^ 157 a -16b 17S«177 a 9 r «-9,a | 66b 9^-9* 16b-17b 21bX2 l5b-16b 19l a -15b 7 tV- 7A 16b-18b 

S ne Year 12b-12b I I5b-I57 a 17bp-17Tg 9l 2 -9b [ 6Xb 9*-9b 177«-18b 31V22I8 15b-16b 15-15 b 7l a -7b 176e-19b 


SDR linked dcpeoir*: one month 12V131, per conq ehroo months 13-lft per cen*: six month a 13Vlft pw cent one year IG^-TOi per cent 
ECU imfcc.l depos>n: orto month 12-I2>i cor cent three months 12V12V per cant six months IZVlSb oar cerrl; one ysw 13H-13H per emt- 
Asian S (cltn.nq r.itoa in Singooem): cne month 15»u-15*» per cent three months 15V-T6 7 * par cent eix months 16V18V per cent; one )«*r 151,-16% per cent 
Inng-lcrm EurodoHar two years lavift per cent; three yearn 15V 1ft per cent; tour year* 15V1ft oer cent: five yeera 1ft- 1ft per cams nondnat dosing rates. 
Short-term rates are cad for U.S. dollars. Canadian dollars and Japanese yen: others two days* notice. 

The iD'tewmg rttos worn quotnd lor London doMer certificates of depowc one month 14.95-15.05 per ceoC ohms months 15.2546X6 per cent; dx months 1SXO- 
15.50 per t-onf; one year 16.50-15.60 per cent. 


UK rates continue to fall 


UK clearing bank base lending 
rate 12) per cent (since June 8) 

Interest rales continued to fall 
in London yesterday spurred on 
by further reductions in Bank of 
England dealing rates. Rates for 
band 1 bills fell by up to J of a 
point and -£i in baads 2 and 4. 
Three-mouth sterling CDs were 
quoted at 12 iV 12 t% per cent com- 
pared with 12E-12) per cent while 
discount linuses* buying rates on 
three-month eligible bank bills 
slipped to 12 per cent from 12) 
per cent. 

The Bank of England forecast 
a shortage of £550m yesterday 
with factors affecting the market 
including Exchequer transactions 
— £70m, a rise in the note circu- 
lation — £30m, banks* balances 
below target — £L70m and bills 
maturing in official hands 
together with a net take up of 
Treasury bills — £X70m. The Bank 
gave assistance in the morning of 
£533m comprising outright pur- 
chases of £29m oF eligible bank 
bills in band 1 (up to 14 days) 
at 12 $-12 ft per cent, £19m in 
band 2 (15-33 days) at 12) per 
cent and £lm of eligible bank 
bills in band 4 C64-S4 days) at 
12) per cent In addition the hank 
entered into a sale and repur- 

MONEY RATES 


3 -MONTH 
EURODOLLAR 
RATE 


Aar Mif Jao Jri 
1982 


chase agreement on £4S4m of 
bills at 12 ) per cent, unwinding 
in equal amounts on July 12 and 
July 13. Additional help was 
given in the afternoon of £72 m, 
malting a grand total of £60Sm. 
The afternoon help was made up 
oE a further sale and repurchase 
agreement on £72m of bills at 
12) per cent, unwinding $m 
July 13. 

In the interbank market over- 
night money opened at 12H2$ 
per cent and rose to 12J-13 per 


cent before peaking at 12-13) per 
cent. Rates eased in the after- 
noon to 12)- 12) per cent, touched 
13 per cent before falling away 
to 10 per cent 

In Paris tiie Bank of France 
reduced it call money rate to 
15 per cent from 15) per cent, 
continuing a recent policy of 
-lowering rates now that the 
French franc is more stable 
within the European Monetary 
System. This followed last 
month's devaluation and call 
money is now at its lowest level 
since March 17. At that time call 
money was increased to 17 per 
cent from 15 per cent in an 
attempt to support the French 
franc The steady fall in rates Is 
also seen as an attempt to put 
some stimulation into the 
economy. 

In Frankfort call money was 
slightly easier at 9-05 per cent, 
reflecting recent moves by the 
authorities to inject funds into 
the - system. Yesterday’s 
repurchase agreement fixed at 
8X per cent added a further 
DM fi.4bn repayable on August 
6. Banks were slightly better 
placed" with borrowings under 
the Lombard facility falling 
from DM ILffbn on Tuesday to 
DM 8.9bn .on Wednesday, 


^ i j «Th * \ ; [H 


Eurodollar 

- 

rates ease 

Eurodollar rates were slightly 
easier yesterday after the recent 
sharp rise. This reflected a cer- 
tain lack of direction in the 
market ahead of any possible 
move by the Federal authorities 
in view of impending money 
supply distortions. Lower U.S. _ 
rates were mirrored in forward' 
trading where the dollar was 
mostly weaker. The D-mark and 
the Swiss franc both showed 
narrower premiums against the 
dollar while the dollar’s discount 
narrowed against sterling, des- 
pite a farther reduction in UK 
domestic rates. 

Elsewhere the French franc 
was at a premium against the 
dollar in forward trading up' to 
three-months as French interest 
rates continued to decline, fall- 
ing below corresponding levels 
in the U.S. Other European rates 
showed little overall change. 


NEW YORK 

Prime rata 

Fed funds (lunch-time)' , 
Treasury hills (13-weeky , 
Treasury bills (26-wcak) . 

GERMANY 

Lombard 

Overnight rare 

One month — 

Three months — 

FRANCE 

Six months ...... 

Intervention rate .... 

Overmqht rate ... 

One month 

Three months 

Six months 


MVMV 

12X0 

12X2 


LONDON MONEY RATES 


| Starling 1 bocal ILocaiAuth- 

July 7 Certificate Interbank i Authority negotiable 

1992 I of deposit j deposits | bonds 


Finance iDteoount 

House Company Market Treasu 

1992 I of deposit | deposits bonds Deporito Deposits | Deposits Bills 4 Bills * Bills 4 

Ovemlg - 10-13lg - “ 12V12T 8 [ 11-123* “I “ "Z 

2 days notice... — — 13 lg — — — — — _ — 

7 days or.. ....... — — — — — — — — ■ ! 

7 days notice-. — lZlg-13 121g — 127s 12 Jg — — — 

One month — 12K-12H 1219-1219 i 2 n 134-13 jaVi| 7 8 jx-i 24 12 *, i*v-i 2 s« 13 , 

JVo months.... 12*-12* — 12Sg 12V«T a 11VU 12*-121* 12» 

Three months. 12ft-12* 12*12^ 12le 13V185* 12S| 12J*-12la 11 12 12ie . 

Six months..,. J 12A-12B 12 ii- 12 S» 12ft ' - - 11B-12* 12ft 

Nine monthS...i 12ft 12fc 12ft-12|* - lHi-UH 12ft - - - - 

One year J 12 ft 12 ^ I2ft- U ft 1Zl * 12S»-»i* IS 3 * — — I — — — 

Tw o years. I — ^ ^ 

Local authorities and fkiance houses seven days* notice, others seven days fixed. Long-term local eirihonty mortgage 
rates. nomtiwMy three yeses 1ft per cent: four years 1ft psr cone five veers 1ft per canL 0 Bank bffl rates in able 
are buying rates Jot prim* paper. Buying rates far.four^nonih bank biffs 12 per cent Jour months trade bills 1ft per 
cent. 

Approximate setting Face for one moiuh' Treasury biffs 1ft per c«t wo months 12 per taut: three months MV 
11»» per cam. Approximate sotting rate f« on* month bonk bills Ift-lft per cent: two months 12 per cent end 
three months 11 r i-11»jj per ceoc one month trad* Mis 1ft per cone two months Iftc par cent; three numbs 1ft per 

CBM. 

Finance Houses Base Rein 'foubtfahed by th» Finance tiouau AseocMon) 1ft per cent from July 1 1382. London 
and Scottish Clearing Bank Rates for lending 1ft per cent. London Clearing Bank Deposit, Rates (or suras at seven 
days’ nonce ft per earn. Treasury Bills: Average tender rates of discount 12.2313 par cow. .Certificates of Deposit 
(Sories. 6 ) 1ft per cant fnm Jon* 30, Oepoaite withdrawn far cash 71 per cam. 


Eligible Fine 
Bank Trade 
Bills ♦ Bills 4 


121z-13 I 
12 ij- 12 7a j 

l*ft-l*J* , 
12* 12* 
12^-123, | 
12^12Jt 

12ra-12» 


13W-1S 

13V-12H 

1518-125* 

lais-iaig 

123«-I2lf 

12 it- 18 Ig 


12T B 121, - _ _ 

UVUlJ 12-12H 12 !b 12^-1218 15, 

ns ye 

- - - ua-12* i2* 


9.70 

14.75 

1S.0 

14.562B 

14X525 

14X625 


JAPAN 

Discount rare 5. 5 

Call (unconriirionaU 7.03375 

Bill discount {ihrea-month}.^ 7.28125 




Finandal Times Friday. July 9 1982 . 


FT UNIT TRUST INFORMATION SERVICE j 

SUSSUM AUTHORISED TRUSTS ™ 


to) 

40X 0UK1833 




GaoMM 

Airericsi Greet 


Crtsceet Unit TsL Nagn. Ltd. toilf) L A C t tatt Tra rt iteragamert 
4MMte,GUWl) . ^ f»34« 

SS ® 

flfd m L«g^*G«teralflWlTlt,l 
ST-vISS* 1 ffr ' g-atnif 5RaylriBhRt,&Wi^J 

rSzL Jr fffc===B & i 

DertAqtOe, Totnes, Owon Tp9 5JE. OBtBSfiZDl . . 14 - 

Tool Part IMI TitJZOa 23JJ | Si) Lnatas Atetahtralten ltd. 


F-p— ■ P.4 ELCI +0J3 

MGrewth M3 33+53 

Am Uafes S2A. „SQ/ vGZ 3JR 

WdrtoniCr Base SO U£JS+Efl All 

hw.Td.Fd. Ss *sg+ox dif 

EacUasPreo. fc2 83X+OX 451 

AOea Hartty & 2ns Unit Ts. Hogrv 
4S, ConPUL Lentan EC3V 3FB. 01-6Z363M. 

latan 

flSU-M 

OffMie&bcoae 
AKMCaoM 
HwKwFbtvI 
HaetoeAcc.FM 


SS 

lS™ffisuT=i8:? 

RsttochM Asm) rtwrnwBt . ^ 



K K ' SW< l3 HjLsS leBntWhi A«*t SUnwmirt WW M ‘ 

M & rSTill; 


B scre tl on iry UnR-Frad Moigtri t«a 
36/38 Ne> Bread 3LEC2M INI). (04384465 Lao 
Disc. lac. Job 2 J2W.4 2B7J| — | 4M 


Zfi. Mary Asp ECWMP. 
LwWartheil«i---.n|H 


rramtioai — — -S'? 

ASric»Sprc.5ia.. JAJ 




UaL Un. 8Cdty. 


Purisar MaitThsrt Msi—anr Ltd. ffc gtoprl. te 

»FWMafl,tnd*vSMXSJN. OM302122 Wonbhe.W*s 

- a=i ia ES?==! 

E. F. Winchester Fond Mngt LbL ‘ 

44, Blnxnhoryfiqoare, WCUl2RA 01-623 SOW, 

gMSSSSs® M=d IS g gg : 

Equity * Lew Ur. Tr. M. (a) €to> 

HderlflC.Ttt.kc.. 

HldNrmC.TS.liC. 

NtlUMaria 
terEasreL 
iamn. 


Uerdt Bk Unit Tst MRB»- UL W 
feobbir** PteL, Ooringto^Sra, 


fesMSJSJi 

r^LBaerkai! 


Hljlssse= 

ga-P IQ HiBhlrt 

+0-3 5.01 Rhytf US* W- * 





asii£===fla Hlaia- 

5SS3Smsdg;{ 3f|r?3 = , 

M Un* « “v» «* _ 

Wfe'ilrstcn Nss. Crichow, Ee« OOMfla 

ihpnAcsiM Trv*M59.7 . 43 < —4 *■* 

Esrrt Tit Can. Fd. Wn-.IXI., ; 


UawTi Uft UnK Tst Mngra- LStL Sara & Froraor &wy __ 

2. StMare Are, EC3A9BP. 014236114 4 fats St. teodwi EC3P 3CF 


lnm»&mpt 

FNrEBtExres 


FMaffty Isstararttaal MMsgoment Ut EquH»*aa*.(2)—|2to.9 **21—141 


i" 1 tffiyr&suiBrWJif: 


62 UaskM Vtafl, EC2^7DQ <0^8X200 

ISS^-sa-ISL *?&r‘ “ 

1 Nobit SL, ECZV 7 JA. 01-Z368U1 

19, WMcgata St, Loacbn. 0.7HF. 01-2478827 

£S;d “ 

Ar b u th n ot Saccr&s Ltd. (aJCcJ 

37, OoeaoSL. Lwtorv ES4N18Y. (0296 5281 



*3* 

James Fhrisy Unit Trait Mngt Ltd. 
U-M, WtsNto Street, Casge*. (Ml-204ira 

J.HnhylnBennrt-.B«4 #-7! && 


%E$r^“k5 

l ?tiSSi^^ti2ii»» i*b » 


MAG Greop lyXcXr) 





FmnEimtea Unit KfaL Ltd. (a) 

^te^vraLEcausttO. - MM SSSteiri 







tetSASri an *7 WAS +03 

5SSSi5gir:l2 

317, High HoQmnv WQV 7NL 01-8316233 

Arkmitir* Messasraent 
PinonaBeGdBS^Uasstascr 061X342332. 

AriretiottFdJriy6_paU 10651 J 433 

B-enSp liScsraTtt(a)(ti(6) 
U dOT ji a2S2. ffoBrtjgd M, E7. 01-534 K44 

liSSES 1 S 

1 fpii 

Do. Grtarth Acc 73X 78.« +CJ 

Do. taaxarTrtm 119.4 J2M+OE 630 

Do. Prf. Ato. TO. _ M.9 ^3 IS 

aSiEs 1 “as s 

Bla.hi«Xcc. 049 

Sv^BnrtbwsiCe. UdT* 

L Bbhopign, EC2N4AE. 01-2838833 

m* m-{ ^ 

art jx. cter Jo, 13 (br T 2 M reiA 
Bbhojrtgite Fraprariw Mpnt Co. 

Stock Ercharx, Laodoa, EC2N IC3. 01X886280 


Robert Enter Trust Mgt Ltd. 

2S> ARemaria St, W3. 0LX)33ai 

MC FratarULUL HiJ 7*4 —J 6X0 

Friends Pre*. That Mtangws (a1(b)(e) 
hxban.E«Deridng. Td. 885055 

illSitSai 


Funds la dot* 
PaMcTnatte, Kbqa 



wt Tst* t-jratoel 
01-5881813 teJ-Jt.. 

IS# 

a AuUntUo. taceuira hum £m4s 

gSSfeETSttBi 

“YS? smsb.ie5«* 

IMI . bttL.m.9 

-o3 Ltmtu Fub4o «*»• 

J53 J.77 S-rcpr — n^4 

+Q.4 4JB Jtran^— ... ■■ Ig L* 

IS ift— .~=3 3& 

• X3 29? ftdm PUtei ‘ 

— TO 




■m s» 


tsSSsston 


+j3 e« &aa?t inaxnt* S 

-J3 IpJ Vrfcn at 3av Z 

-M ScetVCa SactaMm l 

— 4 5-S J'xWri V 

-li.t } BSSfc=l 


45i) -U] 223 


t mu sar jfiy 1 


fflrtaeaH 

'Unacta. fltstriaad to 


(0-4054300 


yari»toa4 Pacts 


ftisfee&L. 



G.T. Unit Maasgan Ltd. 
36,RmhiayChc«ECa<7DJ. <04288131 

6 .T. EatpmMJA/ 

G. & A. Tract (a) (g) 

5 RayteMi RaoiL BrMtwood (0277)227300 

6.LA. W3 50X+OX 5J3 

GstaM Fbad Moasfira (a)f|) 

2 St. Han Ate, EC3AQ8P 104236014 


mMBtmsL MamiUfe MnagMNfft Ud. 
i ^ St-Caage 1 ! Way.G t wesag a . 

= i gSSliSrdfti S 


043856101 

B=d» 


Mayffswte Mene gem sn t Co. Ltd. 
lZaCr ^wSL. 6^.^01406 8W 



lanagers U d. 

0705827733 

1U.M*QX 


Ragb Hst, Kbp W2iae St, EB4. 01-6234961 


mzd a 

■ritaorta Bp. «f UntTnots Lid. tekcKo) 


Ftr EastTnet _ 

CKTnat - 

hjgblscaat T*~ 
lucvuc F wd. .. . 
Hs-ArrcIk.— 





GBW& CIMM) 

77 LantonWal, EC2 
StadtheWera Jana 251 
Do. Acwjb. u»it__J: 
St Europe^) Junrs Jj 


01-5883620 



Ca.Ud: 

014064433 


SO BJi — i +« Scotthh Arekahte bw. Mngn. Ltd. 

m j pe^iiy | h« | te iid r*A ■ ISCSI Vbom St danc*. 041-246 2HJ 

RrabHH, Kbs wn» at St 0-623*951 EgBHyTrBaAaaan.^11126 ULS|-*0i| 546 

gsasfc=KY M 3 Ba«fc=JB M=d is 

Msocaa Ulrit Trial Mngn Ud (sKcKg) *r 

Ufdcom Hse, 22 Rsadani Kd, E7. 0534554* Scottish WMtv*' Fbnd Managsmant 

Mecca HU SL71+Ofl 629 PAB«9C2;EdMu36EHl638U 01-6336000 

. PsgBBTsLJdTfc-PLO mH+ 0.71- 

SafirotoaSuE^S^ 04004555 SlMCO Hteaor Ftinds 
Caa. n w . M J K1 +tU| 3.4) CaBmDO Shed. EC4W 6AE 01-236 1423 

Hit |i 1 

IS teSTir ffii •• --- *8 Stewart Urit XAItomgen Ud.OO 

CtfFract — __S6 ... — 45, Casrtotte Sq, Bfintregh. Q31-a6S71 

_ . • tAnaricmFind JJ4J, 19S4+53 

Hdtauid Bank Brenp ■ Amm. UottsZZZJWA IBS — 

Uidt Trust Managers Ud. -— i3y_ _“i-a + * u | 

MSSxftffi *"* t 2 o 427W2 ^3 Hi 

Wgad Oaytom ffa ga^ DtaL ifm. & & -Wri. *^an. L^lar. 

Oc^vr *33 US San Affiance Fund ktooagaratnt Ltd, 

r_=icisr-HT -0.< i« SmAlDanctHse, Henton. 0*03641*1 

MJ m Safas Ufa Pen. Tit Kan. Ca. LW.faJCeJ 
?+ +2- $4| 9.12Cbrpslde, LoMbn, EC2V6AL. 0143638*1 

W? rrau*M nM * imu 1W7Q I 


IM El Untt Mgrsa Ud. 


jjwneaiCKMth 


Master Fbnd Manapare Ltd. 

Mtatu-Hs*. Artter St, KC4R9BH 01423 1050 


Equity DM* 

Fixed Ira Ara.*- 
•FWesron 4 
IWcbbs,. 


r 7. Next feting Aug. • 
d. (a) lg) 


Reel Ekchaig^ EC3F3DN 014288011 mi a UnH tw ah— . mt 1 1 j 

toglCranMITsI — &*03 1453| *0.41 441 “i 


. OWGrtreSbteLSWWWC. 0M2&O77 

Headenea AdnMstraUan (a) (U (c) MLA Units — ■ — .. PflU 388.41 . — -| 3.73 

**** Murray Johnstone U.T. Mgat (a) 

163, Hapa Street, Gtasgo*. 62 2UK. 0*1-2215621 


tinea] Wm 
CtWtri Acc 
Cown. & la 



^ -P54 

Brown SMptoy & Co. Ltd. (a)te> 

^ywfe tnty Se. 0 4 « WflH 

fig m 

in*?*. — 3 u 2 45i 

North American H.9 27Xri . — 2.06 



IkitqMr. 


Darilag Friday. 




Trades Ifadoa Unit Tnzst 
100, Wood Strew, E.CZ 
tout jmi» i ,....j65.i 




^ &£ Kstl— I PmrtdMt lav. Mars. Ltd. 

m 33*_4 Ka 014234200 


ftaUaaal Wastabufter (a) 


Bad mustor Btonageraant Ca/UL ' 

Tbe Stock Exchange, EC2P2JT. 014882868 


24 St. Potters Bw, Herts. P. Bar 51122 

n -.3 is 

b'loSswfli 

Oaia ie w Fbad Maai g ew Ltd. (z) 

3. Oaraic War. Wembfe* HM0N& (04088876 

r*y fi (j«nes) IfogL Ltd. 

lOaiHd Bread SUEC2M16Q. 034B8601D 

CosilfiJ 036,9 mx 1 06 



Htaana Swrka Lid. 

4 St 8b Meo6 lanfee GC3P3EP" Q34SL0094 
Brerio IntLtir. lac~|4U . SOM) -4 4*8 



Id. tel (g) 

0SC6 837766 
-OX _533 


CalCbKcl 


deg^a.^ 

Cor, Sabsg Unit That Bbaagteste) 
SWLPrin»SM^|aa>f 061-2365685 

CertfS. ef FraTof Cborch at 
77 London WkB, EC2N1D8. 01-5651815 

6ESSKI » 

Chariaes Charities K/R Fuott» 

IS, Moorgat*, London, EC2. 0143841Z1 

ins^^zri m \-zim 

Oarttita Offlctfl Imrest. FwaJ# 

77 Laodoa Waff, EC2N1DB. 01-5881815 

SS55Si=:| «vM2* 

Ctdcftrta Trust Maaageniid (a) lg) 

U, NawSU Beat 4TP. 0M832632. 

^fc==|i 9939 B 

peaSEH aa«- 

IriLTnalfa)- Sfl Sa -tja L79 

BnlcffesoorcesTsL.Du -O in 





mm m 

IMidtMHt Managers Ltd. telly) 
20, Mootvtt^ EC2K6AQ CO-6064477 

aj:d t% 

Mwwbfa Unto Ioann Gran lb) 

PJL Booed Moraidv KX19I&. ' £60322200 

Snap 1st. Fund (SOU B2JJ+L1) 579 

Peert Trast ttowai Ud MUjuH 
252, HW, Hobore, WCZV7EB. ^»nil 


2S2,HbStlMbora 

SSlW^r 



(a) 

HMM4U1 


rt a i i dirtsn FM ffteigmlg) 

57^, Prtaeou St, Manchester. 061-2365685 


Mmstmaat tak of Iretoto (a) 

Ltd. (a) 

034286626 


CO-OB 8041 

l+?JI 5JP 


Moar UrHb Usfei Ud (gka) 

v SSS" mr - OU-2365S85 

PrikaoUnlB 03U 34UI+UI AJT 

Porpetusl Volt Treat Mount, (a) (*) 
48,itota,H*flkyon'nasj«l C49I26868 

■ ■■ M -3 IS : 

Prastkad InmL Ca. Ud. (yKc) 

£4238843 

m~.i is 

flwbdd Ufa lav. Co. Ltd. 
^gM aWtefe,aa. 0L2474S33 

SS£S«5“-+-HM Lao 



(04288011 
64JI —4 S3! 

i) <y) 

02*5-53651 
+L3 



Met Lid to) 

HE. 0L24202B2 
R8 — I 450 
Mgri. Ud. 

8BD- 01-2*8498* 


tt 




Ilot-^J 



1 Qefellt FtML 
le) (y) 

Mr. Haeto 3PU IPt 
CK-4.M432G 



td («Xa) 


nudL FortfeS# Bern. Ud. (mi &) Id 
JfabmBv^EClN2ffH. 014059222 


t Huagm 

01429 8000 



0I4«I<177 


ft. _ 064222271' 


QMerfttakfai) 

Vferieg Street, Ba&n. 023235231 

(Gfflbarfiroiith — )#17 *8.C| 4M 

Uidt Treat Account & hhpaL lid. 

WM. ftoBWWtooa, EC4RWL0X42348S1 
*toite*.FMll_4Bd 56-fat -^-4 S» 

Z™" MOTES 

-&%£3S£SE)&rJS. 

■SSsTal^S^tiaat'. 


Y-- 









* 







' *-■. 


*■<■,■ 




M-.v. •: 


eiff 


Financial Times Friday July 9 1982 

INSURANCES 

•fttajtt JRMMbb Co. Ltd. fc> 

1.3 St. PanTl Churchyard. EMPoQX. 01-3089111 






INSURANCE & OVERSEAS MANAGED FUNDS 


S3 

grarwffle Management Limited Quest Ftanti Mu- Uswey) Ut 

P.0, to 73, St Htfler. Jersey. CSJ4739B P.0. B« »«.».«*»& J«ey._ 053427441. 

«• g sg sjj 5 «.i.-r J 


Next i 


Uh Anar. Co. of haagtadi 

ft, Ntw tot, CtutJiBO, KeaL Medway 812348 

UCtrt»UiUU_ ll« U5E| | _ 

UH* Ufa touuwi 

20^ Cftftan St, EC2A 4HX 01*920 Q2D2 


Norwich IMtti imrUCe Droop 
PO to 4, Norwich NR13N6- 060322200 

NJMCttomota M LM. 


Prawn Property 

SSBSfei^ 

Penwsfl 

PensonSKSjr.tY,^. 1 

PmW Fixed IK 

Pension Indexed Int. 


AAany Uh Anwmtco Co. Ltd. 

SL Otu RurftagtonSl* WJL 034375962 

JtS^fcAFA 

Prep. Fd. AEL — .. 

m - 



Cruder Intnn PLC •" 

Tower KscRTIMV St EC3N4DJ 4882323 

iBgasa&m m~i - 

Eagle Star Imr JMMbind Atnr. ■ - £j£ 

3,Ttoa*Mdl«St;EC& OX-4681212 W>B 

Easd/MuLtlMi — J7U ILfl+flJl 634 

ft LMUftjm.SK.ui 
i R^HpriNycaMw. _■ 049433377 



&£?«■ 


L#M.- 

& Law (Ma nod FWt) lid. 
i Road, Well WtaMbe. 049433377 


AMEV Ufe Anttnmt U&- 
2ft, Prince of Wales ftL. B'nmitK. 
Nanagfd Ftf .pm; 

ifeE®* 

Ites 

Property Pension Fd. 
UMEV/Rwetttfoti 
American & Gen. Fd_ 

I Fd. 


Bvdqs Ufe Auw. Co. LtA 

252 SonrfOrd M* E7. 01-534 5544 

Bst-Glaybonifc. 




FNmBy ft w a na a Society 
68, East Sheet Henfen. 





D4BSQSS 



C.T. Muasmut Ltd. 

3b FfcaburyCha*. Lend. EC2MTOL 0W2B 8131 
IT- Pl»n Bond tod.lW.7 10181 +OB) -_ 


etW 

g mWm 



45* - 



m 




Standard Ufa Assurance Company - 
3Cf«SeStMBW»rti|raaXZ. <BWSS79 



lL 

Fbcedl 

Index Unted...~— ., 

PetnSailMciedll 
Pension 


Sun AgLancc fmara n cc Group 
Son Allaaoe Howe, Horsham, 

' “™ri“ 


Nor. Units June 15 -Ef* “ttf I — I — 

Pearl Assurance CUsrit Rinds) Ltd. 

252 High Hnlbom,WCZV7EB. 01-4058441 
(w. Prop, pm “ “ 

hr*. Prop, to 

IIM. 

lam 

snsfiBE=HH 

Pbonix Assurance Ca. lid. Wrttad Wtoo Fta 

WlOjn WHIIan St, EMP4HR. 01ft» 9876 

KitiJI fKSte: 

Pioneer Mntuta Insmnea Co. Ltd. 



StsbaaEoato Commodity Sar. Lid. 

PA Box 42, Doughs, lj».lt 0624*3911 

mihIt M:d i 59 

Ortgbsd Hue *XU>OUt "EL Next wL-Augra 2. 


Brldgo Management Ltd. 
SP0 Box 590. Hang tog 


Bidoness Mahon Ink Fond (DtsemMy) 
POBm 18ft &. Peter Port Guernsey. 048X23506. 

IKfitaH® 

S.D.R. Etninalert . 

rWrnr k hiln D fcl ■— -» — n - 

rnscs * J Hj o. Ntn (rang 

Kambno Pacfrtc Font MgmL Ltd. 

2110, Comm^ht CeMte, Hong Kong 

S SttftrfB* *d = 



S^&^SS’ 1 ' p SjS 3 8 ^ 55 BSU 

Ptamwd S 

6ft EM Sire 

IS 


Ptamwd SntaQi Snwa 

6A EM Street, Horsham 



04CQ5D2S5 



Britannia inq. lav ei tmcot MnQnL Ltd. 

- to 2 71, gg eeaear &5SL S*™*. ». 
. neKfTaJmeyur. 

• 05. JMtar . 

040364141 Untamal GnartfaRood. 

. DoUar Incorae fd 


m _ 




Hambm FA Mgr*. <C.L) Ltd. 

1 PA. Box 8b, Gue»K] 

■ » SM 25 !!!l 

Sesial Sits. Find— 

Sterling Income FM*. 

DoBar Incame Fb* 1 1 
Trans, ttc. TnoL. 
iMtf.BeaA. 


Outter/Heinald ConmidlttH 


RBC liMestmeat Mangers UMited^ 

PO to 246, St Pew PWL tonwiN 04614303. 

I oU. Income Fd.. 

InU. 6 

North America I 



Jersey Glir^. 

U.& Erowth^nL^ 
USM Fund*—. 



MiftojMjmuda. 9 ^Wn2*7979 



:d - 

Sun Life of Canada (UK) Ltd. 

2,3,4, CadoparSL, SW1Y 5BH 014305400 
♦Lffl _ 


Prawhon Life Assurance Ca Ltd. 

Bawctmter Hm, Honurds He«M444 587ZX 




itoftp— i 
Prop. Equity & Uh Ass. Co. 
42 Ho aieWlt ch. London EC3A7AY 
R-SJOr Prop. Bond _| 2UA 



ESfiSS&iss 


uuj - 


Sun Life Unit 
107, Ctewshfe, 




Made Horse Uh An. Co. Ltd. 

71, Lombaro St, EC3. <Hft231288 

Btacr Kcrse Man. Fit ^ 1R7. 

rfOPCHy nL ___ 
fixed "juffCStFiL 

Ircome 



London A*tfeM * Httm. MtL Auur. UA 

129 lOneMy, LsoiSmWC 2B 6NF. 014040393 
■lilLaw fac sftet l _ 

Assteundoaf GENEKAU S«JL 

S'fSSS^^f^-yaos.® 4 ? 0 ” 5 WtomlDr « BoL his. Co. Ltd 

loA Managed BoixL-11417 MWL , — \ — 18-20, The Fortwr. Ming 583513. 

Cenenl PwtfoRa Ufa (n. C. UA 
CmshroofcS^CtahaAHMs. WxhhaaX 31971 
Por t faa oFd.to . UM | J — ’ 

Hi Hz. LoudMUfeLMedAssur.UA 

Pdr^t£>Tto_gLl 612 ZZ) — UOtTenoleSt.BHUol.BSlbBA. 0272479179 
48, London Frett Exchugr, El 6EU 01-3771122 Rrooill. 


01-621 1124 ItaMed-^. 

I 1 - 

Proeerty Growth Assur. Ca Ltd. 

Lean House, CroyrtoR CA9 ZLU. 014800606 E'PmjrGM 

Pnotrty 


EC2Y60U- 0272-299524 

^3: 





Sesq 

MFiad 

MHftnerft Ftand 
ImmMK FunltXi 

Bjgwz: 

BSSStez: 


teassB- 1 ”* 

B3tiexd Fd — „ 
Smt-Cdsu BK»i _ 
{A’gShotowFd^q 
Null AwT-vuCQi nL ■, 
tMt.F4, 


Canada Ufe Assu rance Ca 

2ft, Hlflh St-Pcnen-Bar^HaHs. P. to 51122 

SOTS'fcrl 5 S 1 l:d = 




Canada Ufa Assuraace Co of G. BHtrin 

2ft High St, Pottn to, Herts. P. Bar 51122 

*ftnagwlPWiFand-.r 
ProctrlriVn Fi 

mk 


O V31M 


acc. j 

!>S- Super 

Rcqral 

Royal £«tenge. EXA 

Property Eton* 1297 J 

ewe iu-i mi 
M ongedmitBl 

g.&czz : 1 
SSA 

Do.toun. 

internal imal IniSaL. 

SSStazrl 

Do. Acen 
Deposit Ii 
Da. Aon 



Caiman Assuraace LfA 
1 OhrmpIcWay, Wembl^ HA9 0NEL 
Efl«Ry Uirts. 


01-9028876 




London A Man tharta r Gp. 

WlraWe ParL Efftar EX5 IDS. 

SttRfcS 


— Fibred he. W. Act. 


099252155 

|+Sii *M 


AU WTher k. Utt| 
lw.FtJ.Ut5 

Cw. Pns. Cap. UL__| 

l»ro£pMsJ 

BUg.Soc.Pea.lit 





FUed tntansi 

= asa 

IntermUonal Cap. 
“ International to. 
— AetericanCap. 



HlFS5SSfeKj5 ”3 SI 

Hdtotsra. 

-ft^S5^afiet Raids. 

Brown SMpfay TsL Co: C Jersey) UA 
PA Box 583» St Heller. Jersey. 053474777 

BnttorfWd Monauament Ca Ltd. 

P.0, to 195, Hamilton. Bermuda. 

Buttress Eooity BRP 


IM. Equity-. 
ft*.Sras. T A' 
loLSras.'B’ 
GdieonAss. 
GaflemiAss. _ 
t&nUes 


Henderson Admin. A Man. (Gu 

7 New SL, SL Pew Port, GCtnWy 


12ft 

Hratferson Baring Group 

801, Ghecfiter Tower, IX Redder St. Hoob Kong. 
Austr^ia". 

-01 

HiU-Soomel & Co. ISnermey} UA 
8 LeFebm Sl, SL Peter Pori. Guenmry, C.I. 
GueroseyTrt L_[2&6 2167] +08] 3ft 

HEB Saonel Investsaeoi MgmL- IntnL 

PA to 63. Jersey. 053476029 


062423914 

4231 



Ramfoco Muiagars UA 

P.D. B Jt, 1549, Hndtp, Bernida. 
RAMItICO Jldy5 

RWhmwnl Ufe Ass. UA 
4 Hffi Street, Daoglts,l.O.M. 

CrdnTiwt 

Dtarmmd Bom 

Gold Band 

Managed Ford 
PrtmuauOHl 
Do-S. 


Roths cfa B d Asset Management tC.1.) 

P.a toft, SLJidUns CL. Guernsey. 0481-2674L 
D.C. Amerta Ftf.*__IS2Jl 2241 PgO 


134+35 

Me ZL. Heat dealing JUy .. 

J “'' -Wf 7. 




DutdlGoHdff-J 
ftxndi Fraca- 
•Prte on 




m 

Sw.BrraiK 

U5.S 

m 


! Pricer cm Jn 3CL Ned 

"toy deafasv 15. UA 

Wedncsdif. 

Save it Prosper Inte rnati onal 
Dealing la 

P.O. to 73, SL He Her, Jersey 
l iit uu t FOMh _ 



053473933 


■Stet: 


Oft. I 


CAL InwsteiHts (loM) Ltd. 
CALMerS-*. 


— Boadsefex 



' Cogdlrex SJL 
PA to 178, 1211 Geaera 
Fonselex 


0104122466288 

'=U“ 


mo 


E S.fcr 


P— £ tnu,. Acc. 

American 


Capital Asset Managers UA 
d B ern ui da Hse> SL JiXiam Ave, SL 
GuemeyC.1. 

Tbe Currency Trust-. |873 9201 1 — i 

Civiiad International Food SJL 

43 Boulmranl Ftoyai, Luxembourg 

Capeal InL Fund | $2X13 1 — I — 


Jap hr 

1 Paterno ne r tew, EC4 

ass y— 


l-OJOj 299 


DUMB 3999 
X95 


Jaff^L 7 * 


PravManca Capitol Ufe Asac. Ca UA 

30 Uxbridge Road, HOW. __ DL74991U JgJ gpfj f 6 — — 

Prop. Fund Inc. 


r Arc. 

JwL inMnl 

J loLAcc.. 

I Initial 

tens. JntT-Acc.. , 

jatteE!!- 

ISiSSM' 

Kamhro Ufe Assurance PJLC. 

7 OU Parfc Lane, Loodoo, W1Y3U. OM990CQ1 
Fixed InLOep- 
Ecufly- 



__ Pern. 

_ Pens- American 

__ Pens. Far Estm. Cap. 

~ Pens. Par Estra. An! U48.9 

— Target Life Assmanot Co. UA 


•Prices at June 307 Neal sub. dqr Juhr 

Ch ut es t win japtwt Cumncy MngL Ltd. 
Ctaanel Hst, Sl Heto, Jersey. 5 053474689 

Ceatnl Assets Camocy Rnds UA 


n “ E»p- 


Pmp.Fd.tolL. 

Prop. F(L lnw___ 
FnStoLFd-Inc.. 

Fixed lutFd. Cap. 

Fiard frt. Fd. Aol__ 


’ r - — _. T. T-. 

_ grarMt je»- TlL. 

= SBftfSffiaS 


_ inq.Pf»(Acc._. 
2nd Fip. Fo-tlAct ._. 
2 nd Mrd. =en!i'Vx _ 
2na Des. Pyra'Acc— 

UH rrre'Ar: 

TodAni. PcnwAqt— . 
2nd InLWouefrVos Aa 

P el indy* Pen ' 

& Ei-.'J— 

LAESJJ.a-B 

Cental 


•Mr A 


Capital] Uh ttranm 

Cothran few, Cfepri AshWtra. 

BS 5 S^-«r-| 1 ttB e : 

CMeftdn A naw tc t Funds 
11 New SlretL EC2M4TP. 


; 090228511 

]:d - 



M ft B Group 

TW*« Quays, Tomer 
America Fund Rood. 
American Rec. Bond. 

AudndaslaBond 

_ ComwocRty Bond — . 

Convert Deposit Bond 

- SSOTffiEl 

_ FwaSyBoo* 

Fir Eastern 

Z gib Bond , 

“ H*YledBondZ__ 

Z IMMftHKdGLBd- 

_ Imtmationsl Bond 

_ - Japan Fond Bond 


EC3R6BQ. (04264588. 


:q = WeH 

— Dep.Fd.Acc. 

~ uSEqpS^wTteZ 

SSTRSfegS BBSS 



Pen.) 
tokfiXF 

Haarts af Oak Benefit Society 

329, Ktoway. Lon** WC2B6NF 0X404093 

^|zd = 

Waadatsan IdaMsWI w 
U Aantn Frhrs, Loodotv EC2. 



Provincial Ufe Assurance Co. UA 
2S,Btdwpsgata, ECX 01-2476533 

Managed Fd 

CoshFdZ- 



SSa&ipi 

laL Eoulty Ft Acc ^tm.4 

ii 

r Pea 1 , 


Man. Pen. 

Man, Pen . Fd Cap- — 

GSPes.Fd.Acc 

GK Pm Pd. Cap 

Prop. Pen.Fd.Acc. 
Prop. Pen. Ftf. Cap._ 
Grar. Pen. FU. Ak— 
Grnr.Pm. Fd. C 
Index-LPeaFtt..-.- 
lnJex-L.PenFd.Ait_ 

Sterling Fund 

U.S. Dollar Fjnd- 

Ufltt’andfiihtT Prias ring'01-2«5j &53X DeptsctoltokRo 
Yen Fund 


aty of W tot ai hutw 


■fenafeehnera Ufe Insmnea Co. 

S*. George’s Way, Stneneoe. .043856101 



RW 


Sot telW-- 

4 IIW 4IAI4MH __ 

Perform Uaits.^ 1 

Fw ' ‘ ‘ 


piJSr 

Series if.!' 

Sartos (U These Ore hu pnee <w earner paUtds. 


Clerical Madia! Mwagod Fund* UA 
35r SL James's Sq., SW1Y 4L0. 01-9305474 

W 5 (=BHL-- 

Prics J|«*la UMt dcsfiegi m 

Catamenia! IMh Graup 

SL HMen'L L Undershad, ECS. 01207500 

!:d = 



Nk Writ Unit Trust-| 

Confederation Ufe Iranranc* Co. 

50. Chancery Une, WC2A 1HE. 01-242D282 

BSSS?. 

PlPtod, 

Puiat.JV) 




North American 
SpedatSHs— 

Technology 
MmgrdPeiK. 

Deposit Pros. A _ „ 

Property Pens. Acc. _ 

FbL tat Pens- Aa 
Equity Peas.. Acc 
For "yip 

PrarientW Penshns Uaitod 
Hafeam Barf, EC1N 2NH. 

aSRSsK’ 

naedlnLJuv7. 

C^FtmdJ%r7 
to-Unfc Beflr— nt 

SSi®” i 

Refuge Investments UmKed 
103 Oxford SL. Manchester 

sa g gw 

Reliance Mutual 
TMbridge Writs, Ken. 

HW nL IIS* USB 

gjpFA.bndlSW) 



5941 ? 


ling. 


Sur Francs- 


FrFrancs- 
SOIft 


UL39 

*<un 


-S 31 


+oS 

+aSfl 


imd.l — 


Cbawton Commodities (Isle of Man) UA 
29, Athol Street. Douglas, IjlM. 062421724 

bsm' 

Cart. Cwrancy i Gdp 

CorahlU Ins. (Guerasey) UA 
P.O. to 157, SL ferter Port Guernsey 
lrM.Man.Fd (217A 236XH -J — 

Cartexa International 

10a, Bordewd Royal, Luxemtawg. 

Oottexa InM. B7Z86 — I — | — 

Cralgmorait Fixed lot. Mngrs. (Jersey) 
P.O. to 195, SL Heller; Jersey. 053427561 

DWS Deutsche Ges. F. Wertpaplmp 
Gronefajrgweg 113, 6000 Fraddnrt 
lnwsta {MOOSO 321151-013 — 

Delta Group 

PA to 301% Nassau, Bahamas 

Delia In*. June 29 [2.78 2.92] — 

Ltom Agertc KMmwt Benson. Tel: tilftZ3 8000 

Desrtscbar Investment-Trast 

Postfach 2685 BMergasse 6-10 6000 Frankfort 


Managed Fund — 

MSSSSl— 

Batonced'CSF Fimdjt 
Far East fCrosshowl.t 
Technology (ITF FflJ.f 

HK Fond Managers (Jersey) UA 
Owns Hse. Don M, St HeMer, Cl. 053471460 
HKGBt Fund Ltd (97.0 IOOlO) ...J 13J» 

LC. Trust Maeagers UA 
10,SLGeorcHSL,DMglaLloM 062425015 
InL Commodities Tst. [96.9 10X01 +U| — 

Ned dealing thy Jam 7. 

IGF Management S erv ices Int, 

:.<o ftegetrars, P.O. to 1044, Cayman Is, BWI. 
intrml. Gold Fund.__[S4502 47i8| J — 

N.V. Interfaebcer 
P.Q. Bex 526, Drift, Holland 
EsneraldatOfferPee) I 0FUO9 

Inter nati onal Band Trust 
2, Boulevard Royal, Luxemhoorg 
Class A NAV Jtdy6_| M.97 

Class BNAV July 6 J »ft 

Int mnB anal Pacific Imr. Mpot Ltd. 
PA Box R237, 56, Pitt SL, Sydney, Ausl 
J avtlla Equity TsL —JAS3J8 125ri| — -4 &00 

lanrestmeot Advtaars, Inc. 

First huriuitenal Ptiza, Hooston Ti 
Fmonto fovetL Fd. _ j — 

UK Agents Janes Finlay Tel: . 

Ster ia er a Tbonts Ctarfce Teh i 

Invtcta Investment Management 
1 Owing Cross, SL Heller, Jersey. 053473741. 

SK&SPSS -® 5 Vldd 8 

Jardvae Fleming ft Co. UA 
46th Floor, Connaotpn Centre, Hong Kong 

JJ. Japan Smalt Co.. 

J.F. JagenTednolasy. 

J.F. Eastern TuZ_ 

Do ■ (foam.) — 

J. F. Pac. Sacs. ( I nej 
Do. (Accun.) _____ 

J . F. 1 nbtLTsL- i 

Do. (Acorn. J_ 

J.F.S.EJL, 


Lontoo Agents ten. Fleming GOoTrel: Q1-2B3 2400 

LeapaM Joseph & Sms (Guernsey) 

Hlrael CL, SL Peter Port, Guertsey- 048146648. 

LJ. Strrling Fund— |Q5J2 35031 4 — 

L J & 5 Currency Rmd 

Telephone Manger for blest prices. 

KMneorf Benson Group 
2D, Fendurch St, ECS. 



k _____ 

deaBngs). toy dealings. 

Schroder MngL Services (Jersey) Ltd. 
PJL to 195, SL Heller, Jersey. 053427561 

riSfflWPUH " 

J. Henry Schroder Wagg ft Co. LtA 
12CL Cheapslde, EC2. 01-5884000. 

SS-Vt*“" ® v 

Schrader llntt Trust Mgn. InL UA 
to 273SL Peter Port Cuenoey- 048128750 

MA 

IB 

Sdndw Ufa Asswmee InL U 

Mfc""” " 







Next deoOflg 



Sf 


uemsey In 



0L4059222 TrasraWentaOonal Ufe fob Co. UA 

OJa M ?' 7m Drew< fchto Lasobtrt 

i ^ •"••4 77 Issmbinllfen IrauUn CM 

Series 2 Fixed lm.FL. 

Series 2 Moaey Fd.— 

Series 2 Oto»F&_ 

Tofip Invest. A. 

Tiifo Managed RL J 
Managed finrTFd. InL 

"— ] _ . Man. Pen. Fd. , 


“1 = 


Trident Life Anurance Co. Ltd 


— Hanged 


089222271 todon HnAGfouceTOy. 

= 3 = 

— j American p41 

— J — ii x FmitvF.mH 


Royal Uh Insurance LtA tstsa 

Mew Had Place, Uwnwri 1693HS 051-2274422 
Royal Shield Fd 247 J| +04) ~ KSSttEJial, 



GIRfto- 1 ^^ 

Money Fc 

Sava ft Prosper Group 

A GLSLHelm’v Lodn, EC3P3EP. 
Global Equto Fund D)J " “ 

BaL Irw. Fd- 


M era h u t Inv est ors A ssuran c e £_ . 

Lew Home, 233 High St, Dajdpn 0MB69171 STtoStirt 



"Prints 


,Zl — SAulPolW 

lUluLL, rfnlllrwv: Ffaflu I 

fnwoy oeaniqp. c^nrni 

Sctaredw Ufe Assurance Ltd. pEp”"-’ 

Enterprise House, Portsmouth.- 0705827733 Deg. 


lommfel Life Ass. Ca. of Can ad a 

Imperial HooraGdldfonl. 


•— HortbAmeriam 

= &p: 

— MM. 

StoTtezzr: 

71255 


Continental Ufe.l nraranca PLC 
64170 High St, CroyttonCROTXN 01-6805225 




MuMpIo Haa»i and Life Aasar. Col UA 
- - H^rBntoCen^^g^ 


CambH I 

3£ CPnWlL C.C.3- 


01-6265410 


Irish Life Assurance Cm. LtA 
BatHdro Home. 7/11 Hoorwe, EC2. 01-6068401 


MEL Pensions UA 

MPton Court, DortrW, Swroy. 
N.elexr - — 


CrtA 1 ^ ft Genwierce Insoance Cm, (UK) 
CCI Kk, HrlWfe U M. B3A59B.GUUM2L 

Si K’BgLSM 

K«hlWXW“FA.lM | 


Cl Property FA. 


m - 



= nitiEfed 





77, Loudon Wail, London, ECZ. - 01-6283200 
Wtodwster Ohers Red Ud. NAV May 3L 52437. 
WirtesterOrorseas Ltd. NAV MaySL imm 
Winchester U^. Reserves Ltd. Current ytrid 136% 

Dreyfus IntefeenUnenbri Imr. Fd. 

PJO. to N3712, Nassau, Bahamas. 

NAV June 29 .(2665 2835J 1 640 


_ .Anarni— ]1248 

K.B. Eurobond Fd .Zka.-J® 
KS. Far East (GnsyJ|£Ul37 

K.a Grit Fund ©ft 

K3. InL Bd. Fd. Inc-.r 
k!E InL BA Fd. Acc. 

K.6. InU. Final 

K-B.JjpanFuod — , 

K.3. Steri. Asset Fd. 

K.B. ii.S-Gwth. Fd._| 

Signet Bermuda „ 
Transatbntic^d- 


9.72 




S cri mgeow Kamp-Gaa MngaiL, Jersey 

LCtorfogCroisSL Heller, Jersey. Q5347374L 

Mi- 

SacurWes Sdecttoa UA 
Bermuda Hie, SL Peter Port, GTaey. 048126268 
Fbrexfand | - $UU»[ I - 

Scntxy Assurance I n tenwtlo na l UA 
P.O. to 1776, Hamilton 5, Bermuda. 

Maraged Fond -&4J334 45467] | — 

Signal Uh Assurance Ca Ud. 

Ocean HelihA B «t«w > , GforaHar. Tries 2332. 
GrowU Strategies FdL-|£2ft 2J4| _..J — 

Stager ft Friedlander Ufa. Agents. 

20,CtamooSL,EC4. 01-2489646 

Strategic Metal Trust Mngrs. UA 
Z'Z 3 ™™ 3 HID Street, Doaglas, 10M 062423914 

strategic Metal Tr._R0.l20 943J{ 4 — 


*88 

-ttai 


Stronghold Maaagemetit Limited 
PH to 315, SL Hdier. Jersey. 0534-71460 

Coma BdRy Trial [13230 13L26I+4JR — 

Surfrorcst (Jersey) UA 

4, must, Douglas, Me of Man 062423914 

Copper Traa KlUO HJ9|+IU0! — 


Duncan Lawrie Imr. Mgt-LtA 
Victory Hse, St Peter Port, Gaerasey. 048128034 


542ft 

Korea International Trust 

Ftond Nbl: Knna Invest. Trust Ca UA 

ajs®.* ** ""oSJbsi 


TSB Trust Funds (CJJ 
10 Wharf St, SL Hriiar. Jersey ICI). 


053473494 

9 



01-K4SB9 9 Tyntaa Assnrance/Pensfem 
_ 18, Caoyoge Road, Bristol 

= m 

z » i 

- 


liidexXioM irond Z) 

Vanbrugh Uh Assurance 

4M3 Maddox SL, Ldn. W1R 9LA. 
ManagedFA. ~~ 



— Fuad InL FA, 

= at#— 

— Vaah ns gh Fusions Limited 


iassstsL = - mn 

k^ll — Prism in hr Lfe Series 4 A 


— Prism lis^Lfe'5erto4 Act J* 8 

— ‘B Ace July 6 Other prists 


garbed 


Fttwlmmt- — 



SrSI 

Guaranteed 



W*** gfcSSiorai: 

Bason ft Dudley TsL MgL Jrsy. Ltd. 

PJX to 73 , SL Heitor, Jersey. 053473933 

E.D.I.C.T. I3D4LO H4J —4 - 

The EogGrti Association 
4 Fore Street, EC2. 

ttartgSeCio. F4« . tl£29 161 
*N «1 dodlng Johr 14. "Next deal 

Ermttaga Management LtA 
Gramile Hse^SL Keller, Jersey, C.L 053476007. 

agagLz -m = ta = 

Eurobond Holdings N.V. 

Piete strata 15, VAUemstad, Curacao. 

SXI. Europe ObHgatioiis SJL 
?, Avenue de la Lfterte. Luxemhoorg 

London Age nt: FFS Sanshwy Hse. umdon Wall 
EC2M 5TA. Tel. 01-920 0776 Tefcx 887281 
Earape-ObHgaUons—[ S42I6 (-0291 L40 

Euro tax Investmenfs LtA 

"• OT2J3Slhh 

Euraiax In*. Fund— .IU86 U4J] | — 

Executive Life (C.LF. Managers UA) 

PX>. to 1063 Grind Cayman AW.I. 

Trans Attac Girt FU. BULK — j | — 

01-4994923 F ft C MgmL UA Imr. Advisers 

X Lrairence Pountney HFU, EC4. 01-6234660 

„ 8 §MK£:L m 1=1 a 

+0-2] — . Prices Jin 30. WeUy dttlKVL. 

Fidelity International. 
n^994923 SeSS^ET H “”' *- fc ®7l696 


NAV won 6655.89. IDR value USS8944ftL 
The Korea Trust 
Oaehan Investment Trust Com 
1-5181 Vclda-dang, YDogOungpo-Xu, Seoul, Korea 
NAV July 3 (won 1^348) (USS1531) 

Board Brothers ft Co. (Jersey) Ltd. 

P.O. Box 108, SL Heller, Jersey, C.l. 053437361 

Bras. InL tei, 18 ®® 

Bros. Ira. Asset- 

Laz. Biol Far East _”(fi£57 1059|+lU^ 

Uoyds Bank (C.U Vft Mgn. 

P.O. to 195, SL HelHer, Jersey. 0534 27561 
UoydsTsLthcas — p« 793 -LW 3.45 

Uoyds Bank International, Geneva 
P.O. Box 438, 1213 Genete 11 (SwitmriMid) 

»&SajB«d ^8 

Uoyds Bank Int e rn a t i onal, Guernsey 
PA. to 156, Guernsey, Chuwel Worlds. 
Alrxanler Fund .. — I 51147 | — 4 — 

Net asset value lore 28. 

Louis Dreyfus Commodity Fluid 
do Trustee, P.O. to 1092, Cayman Minds. 

July 7. Valuation per unit 55Jfi4j48. 

M ft G Group 

Three Qsoys, Tower HIR EC3R 6 BQ. 01-6264588 
Ariantic Ex. Jotr 6 , — C ' ‘ 



toes on fty 7. Next sab. ttsy Ju/y 

Tokyo Pacific Holdings N.V. 

Intbzds Management Co. N.V, Curacao. 

NAV per stare July 5. 57L82, 

Tokyo PacHk Hldgs. (Seaboard) N.V. 
Irttow Management Co. N.V 4 Curacao. 

NAV per share July A $5241. 

Tywbl Group 
2 New SL, SL Hefler , Jersey. 




(Aeoan Units)-. fitlS 

Management International UA 

Bk. of BetmudaBMg, Bermuda. 809-295^000 

m |:di 2i>0 

Prices on JstyZ. Next dealing July 9. 
Midland Bank TsL Carp. (Jersey) UA 



053436221 Orm 


“a y. 

Internal. Managed-. 

O 0 .S- 
UKM 
Do. 

M. A TyrreD ft Ca. (Jersey) LtA 
PA Box 426, SL Haller, Jersey, CA 


-I — SU100) 


4 - i 

Lux. ’ 


> on mpBL 

Scottish Amicable Investments 
PA to 25, Crargfartfo StHng. 

“14M - 


Crates** life Atturwct Co. UjL 
14 Pfmr Brito Streef. EC4V6AU 0MMB«1 


Ktag ft ShaxfBB PLC 

52,Cen«h8l,ECa 

Bond Fd. ExnwA — P3.40 


01-6235433 

tU7HUW - 


z !SES 2 E 2 i 

Non 1 
__ IWn 


NPt Pensimw 
ftCracathorthSt* 

National Provident Institution 




pw&rtw - — :jb 

AoseritM 1 

harrantaori . 

^PtatSTlop-Z.: 

Caguv — 

Crown life 
Craw Lift Hsr^WAloaGuaUW OWW50H. 
tint. Fl'nQL.u. ._ 



Ufe Asssr. Co. UA 
WHlig, HeUrook Dr, NW4. 01-2035211 
HlrV«tPwv.FOTd--'aS 0 “ 

Ungmm^A pud —WA. 

Lral ft General (Unit AsswrJ LtA 

Cart) taftial. 

BasF=* 

Fised InMnl, 

MSS'^ 

SterigUltto^ 
to^Sssr. 

Do. Acorn. .- 

Exempt Hty- 

Dp V" 1 * , 1 

Ertoua Find bdL— 

DO. ACOM- u — 

Exempt Inti, bdcbl 
Do. Actum. h. j ,. ... 

Exmm Mags. 

ga.AcngL^--,- 
E»rraoi Prop. imt_ 

Po. Actum ... - 
So. Deposit tail., 

Do, A cort 

Legal ft General Frog. PA Mgn. UA 
ll to«n VWorla St, EC« 4TP, QM48967B 

LABJofy! THrantjp-j- 


ExrmpL Prop, tntt — 
DO, Afflm ■ 1 
ExeamtCadihiU. 
Db-Atctxh. 

A^GnNehweh.SW^SHH. 01 -6^ 4200. 


m - 




Z Windsor Life Assar. Co. LfA 
Sals Royal Ataert to. Start SL, Windssr 68144 
Inraaae IlnlW! r m — “ 

Atom. Pm. Units — 

tet- Ass’d Pen. _ 



ffi-34. Hill SL, SL Halier, Jersey. 

SSSiBiSEJS "L's.rm IZS&JZ’dSgSi iLMffi aps & ’ 

— . JJQ 



MORES July 1 |J 8 ft 9.I&HUEI 

Sam net Montagu Ldn. Agents 

na, CM Broad SL, EC2. 016886464 

AEIT Esq. July 2 r 

~ ApoBo Ffl.Jeg7 


RPrices at Jwe : 


JarieitJu* 

117 Groqi Ju. ,_i 

ffift’wfaa 



OFFSHORE AND 
OVERSEAS 


AtBg Investment 

****** KM, 8000 Mixricb 1, Telex 524269 

a A iwri.. mem 2L6" 

.. . 52.9 
.« 


Flembig Japan Fond SJL 

37, rue Notre-Damb Lnembourg 

Fleming July 6 1 42ft | ....-4 — 

Frankfurt Trust Investment— fimbiT 
Wlesenao 1. 06000 Frardcfort 

FT-Inttrrira IDB09J9 8).7H*0 

FrankiL EHefa.Fd._ 


Free world Find LtA 

Butterfield Bldg* Hamilton, Bermuda. 
WAV March 3L | S14420 ■ | .. 


Scottish Motual Assuraace Society 
109 St. Vincent St, Glasgow 041^486321 


Altaoy Fond Management United . _ ........... . ... 

P;D.to7iSLHriier. Jersey. 053473938 §~ . CttK3 ***• 

Men Harvey & Ron Imr. MgL CC.U _ Sg®?-*® 1 ®* for: 


-4 - 


Murray, JaEmttone (Inv. Advisar) 

163, Nope St-, Qaigoar, C2. 

Kmk SLjfone 30 
Murray Fd. Juw i _ 

Pacific FundJune 3ft 

Nat. Westminster Jersey Fd. Mgn. UA 
23125 Broad SL, 5L Keller, Jersey. 053470041 

Higa tame Fund 147.6 

Equity Fund p2J 

laumtiimal Bond* - W.4 

•Sub. day every Thun 

NegR SJL 

10s Boulevard Royal, Luxembourg 

NAV July 5 159.06 - | _..J — 

HILL. Intanutlonal LtA 

P.G. Box 129, Sl Peter Pori, Guernsey, C.l. 


Urion-liivestimit-Gesenschaft mhH 
Pwtf aA 16767, D MM 

V.CJL Financial Management UA 
42, Essex StreeL London, WC2. 01-3536845 
PmAmer.O'sFd t»,48 — | J — 

__ Vantorngb Ftamd Mngmt. Inti. UA 

041*2213521 2834 HH a, 5t Keller. Jersey. 0534362B1 
VtabrtJflh Oertnty FtfJUDiS 11IU| 4 8.24 


lE^E 

Kgra. 
0534' 

Ej 


S. B. Warburg ft Co. Ud. 

30, Grasbam Street, EC2. 

Warburg Invest MngL Jrsy. UA 
7 Library Plate. SL Hefier, Jsy. Cl 053437217 

*®isr 




“ 9 * — 


_ gg jSar-BVa ~~i Z ICtarfoglboi SLlfota.to”ar. 0534-73741 Aidi&litLFd'-, 

- IRKlMLBimidH|GEAc. 

PO to raws 4000 JUfac, tntnnaini D !tt , K;gSg,-ES_ 

_ Datritatlaa June 23 (OJXX045) (13.494) G.T. DdlarFd.-, 

- Arfo^fiwt Securities (CA) UA (aKc)Ch) 
z P-Ato 42S, SLHeHer. Jersey- 053476077 £t. 
z Dtdlprlocor " 

= IRW-* 

— Sterttpg 


s ig(sg , ig isssssfe! 

3 i-nan UW sterling Managed — 1 


New Zaafend Sth. Brit Inset. PLC 
MaRlud Home. Soothend SSI 2JS 070262955 

r Uw. Ptao— I 


+Wj — 




DeaOtg B) WetaNsaqr- 





Gartmoro invest Ud. Ldn. Agts. 

2 , Sl Mary Aw, Londwt EC3. 01-2813531 


S 3 SfiSfiSF^S 9 fc 


-gtk&'S&i 

mm 

Skantfia Life Assurance Co. UA 
161-166 Fleet St, UndwEC42DV 
Managed Aet _G2a3 

■wi fe. — 

MtmatiDnd Acc 1 

Pens, Mimagrd Ace~-i 
P a8.EtagyAtc.-_] 

For Pikb el 00.. 

Bash Brits phase 


totit of America intarmtiwai SJL 
35 Bouleard Royal, Luxembourg 6 J). 

Bwciays Uxdcwn international 
spari ng Cron. SL Hefier. 

U Biota Trim n*r 


Sa'ffiiS? hS^Ti 

tontaTsL^ZZl. WLi 





.(Fir East) LM. (aXta) 
nt Rd x H. Kong. 

aSSKiTEZlF™- fr 

.American T« 

InU. Bond Fail. 

GarfBMrt Food Mire gm i (IOM) ( 4 ) 

PJL to 32 Douglas; Isle of Man Tel, 0624 23911 

Anlcwriaonl GENERALI SjiJL 
P.O. Box 132, Si. Peter Port, Guernsey, C.I. 

1 Fd.KU7.79 12S.991 . — j — 


Sterling , 

Imt. Fixrt inimara^|7lJ 
Irani. Maragea 

Nortisgate UnK Tst Mngrs. (Jersey) 

P.O. toB 2 ,SL Heller, Jersey. 053473741 
Pacific Fd July 7 — 159.17 W7|-0ffl - 

Pacific Basin Fund 

Uh' Boulevard Royri, Luxembourg. 

iw?S2f Lhl'iAwtaT 

Phoenix Into 1 11 ti c aal 
PO Box 77, 5i. Peter Port. Guem. 048126741 

Imr r- Dollar Fund .[2.99 

Far East Fund 

imLCyretcy Fatf... 

Dollar Fed. Int. Fund. 

Star. Exempt Hi Fd. | 

Providence Capitol International UA 


Vhrdley Investment Sendees UA. 

« Floor, Hutchhon House, Hong Kong 

s^js&es® sa =4 is 

SSSsSS&RS jJlrj !M 

World WMa Growth Manage mentta 
Ufo, Boulewd Royal, Lnembourg 

Worldwide Gth FM J30J7 | J _ 

tax. W»- M. & S. lire. MngL, Ltd, Loodox. 

Wfen ConMnodto tttaagemetrt UA* 
3A3LGaoita^St,DooriBW 062425015 
Wien Cam. Fund,™ 



vanguard Cmdy. FtL-i 



.Goernsey 0481 26726/9 


PO Bo* 121, Sl Peter 

I no. SWdonartetT.Z 1 

N. Am. Suchmatut_i 

Far List 

U K Bred Interest m_ 

InU. Fixed int 

lefl.Gurrfncy 

InU. Money Market _ 

U K. Money market- 

Stlo.Mangd.Fd. 

Mar Manrt Fd. _ J[ . 

Smug; Twnet , 

Prices 00 Joiy T, Next dealing jog 14. 



NOTES 

Prices an in once vrtee oth erwise Indicated and 
those designated S with no prefix refer to U.S. 
Milan, YWds% (shown hi Imt column) ado* for all 


A Offered prices hxSdde all 
e Yield based on offer 


open*TO price, 
res. p PwH ' 


buying 

expenses. 6 Today's prices. 1 
price, d Estimated, a Todays 
h Dtscrfliution ' free n UK taxes, p Periodic 
premiom haoranoe plans, s Single {xemmm 
noun me. x Offered price bxfodu an exnenses 
except agent's eornmlssMn. y Offered price inefodes 

T managers Jl Prevloo* 

- »«»: * Suspended. 

. Jersey tax. t Ex-suUnrhJtn. 

tt Onhr xveUaMo to charitable bodies. 


-W wrrawwfw n a » 1 wwam iuii. f V 

— aH expanses If bought Uxwnjhr 

- 


- ,--.j 










FT?' SHARE ^INFORMATION® SERVICE 


Financial Times Friday July . 9 1982 
FOOD, GROCERIES—ConL 
m*lm i M 1 w» M S IcwfSH 




a iciai 


F> LOANS — Continued 


ThaftBTR 


MDb 95b FFI1 

100 94 FFKll 

88 80 Do. 

Wl 8Zb Do. UPfc UisJjl 

92 78 Do: 

93 78 Do. 

94 82 Do. 

65 M Do. 

62b S3 Do. 

73 62 Do. 

69ia 57ft Do. 


I Mm l+orl TW 
k 1 £ I - ) M.J M. 

Financial 

13.93] 1338 


H82 

Hgfe U* 


BANKS & H.P. — ConL 
.1 sm I mi M ft W 


rai 082 

r w 8rt|fJE 10* Lor 


CHEMICALS, PLASTICS— ConL 

■fU M UME WKU 


ENGIN EER! NG— Continued 

uMftUai 




Exdi. 11 toe 1964. _ 


Y~.iTi ■ 


'n 


Si 


TT r 






re- 






TXT 






Harctjras5fi — 

hih Samuel 

HonoSanAZAO 




_ I 77 I 42 
17 
*6 


DRAPERY AND STORES 

*U7 






£ 


190 

Msb lh( sw 

1 13% I Abbott Labs JI 

lift 

S 

fr 

28 


6b I VLU 


AMERICANS 

** | r MtWJ 

I — ! 




I 






lnqersoU-RS2. 


V^’ 17 


Corp.SL50 



b SL40 
b 53.40 
U 52.40 
>4 52.00 
V SL80 
14 72c 


LQ 

56 J g 

M l Jl 

7“ m 


si 

Tjj « 

“ J! 

6.7 

6.9 

5.9 

9.7 
1L6 



68 
146 
54 
65 
23 

n* 

530 
- 525 
81 38 
ma 154 
Oil 

3J1 n23 194 
lp7 137 
7.2 4.7 W 

M" iS 

I* m 

*■ s 

94 

{STjl S 

17.9 


42 

36 
29 

aoh 

107 

22 
.73 

36 
4 
14 
42 
150 
324 
177 
33 
21 
180 
29 
UZ 

183 +13 
78 +11 3J 
156 -2 4.95 

68 b25 

69 -1 657 

81 hUM 

« .-5' ST 

86 ..... 255 

9 


m\ 


■nri 


75 

U 

_ 375 
95 Wi 

55 a 

6.0 43 

9.6 470 

4.9 66 

3.1 

54 303 
85 24 20 

9.7 105 73 

110 & 2 

45 « I « 

8.9 132 
6.0 550 
11 MO 

10.4 » 9 

5 0 29 37 

66 66 56 

ibj m In 

M WO 

5J. 390 

•SJ 8 

» 1 

55 

oS 

280 

266 
141 
150 
120 
235 
87 

?i 

iso 

107 

%|S 

66 1 53 
22 

336 92 

33.4 g 73 

1 1 92b 71 

U3 a J5 
m 

“ I! 


BUILDING INDUSTRY 
TIMBER AND ROADS 
218 | 


39 
91 
21 
54 
43 
58 
234 
220 

w-..i 133 
(D.J2C4.1 93 
78 
221 
75 
5 
78 
155 
HU 
77 
220 
19 
104 
58 



100 73 
17 I 11 

a? 

a 


BANKS AND HIRE PURCHASE rT 
W*** L> I Stack f Me* 1 + -*1 Nrt |pw|ft?|wE 176 

5 I Q28c I 351 811 38 J72 


r,t 176 
3J 172 
'l40 

115 
75 
77 
15b 

116 . 

— I 29 I 18 
35 67 153 
HIZL8 h75 
51 


01-236 9502 


Stop wasting valuable time waiting for files at 
Companies House. 

Call Annette Walker to order your Company Reports. 

. Charges quoted below include paper copies of Documents 
{irrespective of length of Report) and postage. 

LATEST ACCOUNTS and ANNUAL RETURN £1 0.00 + VAT 
FULL SEARCH £15.00 + VAT 

as above + Certificate of Incorporation 
+ Name Changes 

+ Memorandum of Assoc [1st page) 

+ Mortgages etc 

MICROFICHE £5.50 + VAT 

(includes all documents filed] 

To order your reports simply call Annette Walker on 
01-236 9502 or Telex No. 881 1506. 

N.B. Companies registered in Scotland take 2-3 days. 




184 
460 

NotL Brtck50p ] 150rt 
Ptawrtx Timber I 56 
205 
244 
12 
70 
180 
171 
£73 
140 
165 
36 
163 
96 
176 
39 
S 
54 
25 



200 

48 
16 
340 
33b 

66 53 

13b 9 

23 13 

70 58 

119 86 

7 5b 
110 87 

61 
32 
46 
15 
35b 
178 
44 
835 
25 

W 29 

143 
80 

49 



34 
75 
14W 

50 
192 

55 

ButttrfieW Hvj.l 25 

51 
48 
57 
31 



8 

1 12 *120 

m V 

B S3 s 

20 15 

62 41 

158 94 

118 70 

116 38 

35 21 

26 17 

75 58 

150 
145 
2Z7 

16 12 
82 65 

28 3 

122 96 

36b 27 

150 
186 

* 

w|£ 

350 
55 

M4b 

27 
169 

a 

r 
61 
22 
52 
140 
60 
18 
22 

28 

ft 

V 
325 
32 
247 
114 
17 
47 
66 

IS 

s 



13 
19 
3U 
17b 
16b 
305 

ftpjRpl M 

MvfinrirZQp-l 222 
McKechnie Bros./ 94 

8 


362 

£35% 

j£|»: 

— s* 

m 

M 
U 

iB 

97 


HOTELS AND CATERERS 



91 
. 19b 
203 

34b 

294 
195 
85 . 

*2 19 

n i 
68 § 


63d 

.17 r.... 

192 -3 
30 ) — 
230 1-3 
163 ' 

89 
149 

36 
60 
29 







INDUSTRIALS (MisceL) 


93 
£21 
302 
170 
49 
43 
62 
230 

a - 
61 

IS 

T 77 

54 M lAshtay lid. Ttt. 

11D 50 *■ 

29 21 

100 n 

I 

38 31 

182 
182 



5« 
228 
22 
177 
36 
. 97 

cuijS 

T* 282 
** 12 
-28i a 




42 
48 

63 115 
185 
£30% 







542 
108 
72 225 
96 218 
* 4g 

140 
455 
253 
120 
372 
*16 
100 
— 1930 
5L9 115 
351618 

67 



CHEMICALS, PLASTICS 


2 V FINANCIALUMES 

SUSMESSMFUWATKMSERVXZ 


7hp FmancU rime* Omnwst [nrwmaoon Uriwd. Regsmti m England Numder 202281 
PeqlstrTfd Office; Bracken Hot fie. lOCimon Street Lexicon EOP4sr. 


27 16 223 
29 22186 
3J 45 7.9 

- — 175 
13 62 125 
12104 7.9 

12 82114 

20 29207 

7 

: S3 - 

«36 55 65 

21 71 5J 
21 71 57 

13 9.5 mu 
12132^7] - 

— — — 16 
13 64101 280 
U 29CEJ) 33 
36 53 8.4 
29 45106 


436 

132- 
21 
158 
260 
78 
34 
158 

m i 

Ifi 

30 
172 
280 

20 24 

97 83 

87 I 70 
*171 
IS 
200 
85 
77 
26 
12 

S' 

* 

106 


45 
37d 
48 
24 

36 
60 
50 

i? 

375 
*7 
10 
76 
17 
340 
236 
64 
21 
102 
16 

385 pL3 
» 1 


170 45 

68 05 

71 55 

U -- J 
10 

50 +b 

51 

41 ....V 

130 +1 

86 ™ 


85 
41 
385 
275 
150 
43 
104 
38 

?28 84 

61 53 

15l 2 12 
74 57 

293 
239 
£16% 

263 
64 

1*6 
52% 391. 

a a 

38 23 

S 2 

167 
625 

30 121 

31 f 22 
30 I U 

* 

9 


23 1 28 lC,H.I«Ph.20p 

% 1 
u 70 
31 
190 

24 


210 
14 
300 

371 » 

H 135 
7J 1 n 


Caparo Inds.^. 
Cape Indnstrin 
Cnyans.litt.2Qp 


.53 

16*' 

iS 
128 
139 

96 J 46 

a io 

W I 78 

9 


rteCCJnoMt) 



WiTk!10|i_ 



Dom Hldgs. 


S. 



NudlrtPItlOp 

P«ar*offJefl»s. 


m 


» 49% 


7' 

s 


n? 









¥] 


Hi 




li 





?! 


rri 



WW09-I 25% 




I 







K§S«,’5Kefe::, 

































































































































































































































































































































































































>*- £TJ K V -w -AT.. 


36 


Balfour Beatty 
Builds Better 

PTlXTAMflAT TIMF<iI 

BELL'S 

f AJ. TuaJ-T v^XjlaJL/ A A 1VAJH»3 

SCOTCH WHISKY 

EB 01-686 8700 

Friday July 9 1982 

E£E!JL S 



TALKS ON PEACE FORCE FOR BEIRUT 


Habib plan prompts optimism 


BY JAMES BUCHAN IN BEIRUT 


NEGOTIATORS working to save 
West Beirut from Israeli attack 
believe they may be close to the 
basis for an agreement. Their 
optimism follsa suggestion yes- 
terday by Mr Philip Habib, the 
U.S. special envoy, that the' poli- 
tical leaders and guerrillas of 
the Palestine Liberation Organ- 
isation should withdraw from 
the encircled city at the same 
time as a multi-national peace- 
keeping force is deployed. 

The raised hopes come amid 
warnings from the Soviet Union 
that deployment of U.S. troops 
in Beirut would not he wel- 
comed. Mr Leonid Brezhnev, 
the Soviet leader, did. however, 
urge the U.S. to try to bring the 
crisis in the country to an end. 

Negotiations on the crisis 
centreing on Mr Habib are 
taking place at the homo of the 
Lebanese President. Mr Elias 
Sarkis, in Baabda, just cast of 
Beirut. Chiefly they involve the 
Lebanese Government and PLO 
intermediaries, including Mr 
Walid Jumblatt, who leads 


Lebanon's left-wing Druse com- 
munity. 

Mr Habib's suggestion, made 
unofficially, could be decisive in 

removing a major stumbling 
block to a solution now that the 
U.S. is ready to send troops 
into Lebanon. 

The Palestinians have agreed 
in principle to leave. They are 
thinking oF the Damascus high- 
way as a route but insist, with 
the' Lebanese Government, that 
an international force js de- 
ployed first. 

They want it to supervise dis- 
engagement and to protect the 
Palestinians and the Lebencse 
left-wingers and Moslems in 
West Beruit from possible attack 
by Israel's Lebanese alli&s. the 
Phalangist (Christian) forces 
who control East Beirut. 

The role of France in any in- 
ternational force is likely to be 
nearly as critical as that of the 
U.S. It is thought that a multi- 
national force could scarcely be 
objectionable to the Soviet 
Union if it were demanded by 
ail parties to the conflict. This 


is a French condition for in- 
volvement in any force. 

France is setting four condi- 
tions for its participation: 

• It must be invited by the 
Lebanese Government, which 
seems likely: 

• All parties to the question, 
including the Palestinians, must 
agree to its deployment: 

9 There should be some form 
of mandate, firing both the 
duration of the force's deploy- 
ment and its tasks: and. 

• There should be some un- 
specified " cushion," in the fnnn 
of a United Nations decision, 
that would legitimise the force. 

A Palestinian request to the 
negotiators on Wednesday, that 
they should leave Beirut but 
wait and regroup in the Bckaa 
Valley until the various Arab 
governments agree to receive 
different detachments, is not 
seriously entertained, not least 
because such a grouping would 
be vulnerable to Israeli attack 
on open ground. 


It is being suggested that 


Syria would accept at least une 


of the two Tegular battalions 
of the Palestine Liberation 
Arrav, that is. 600 fighting men, 
and "a further 1.SQ0 Palestinian 
fighters mobilised last year 
from other Arab countries may 
be able to return to their 
former places of asylum. 

That would leave about 1,200 
Lebanon - based Palestinian 
fighters in the city and a 
further 2.000 Palestinian militia- 
men. originally deployed to 
guard the three Palestinian 
camps in West Beirut, many of 
whom have families in Beirut 
and may. if allowed to. disarm. 

According to Palestinian 
fighters on the front line, no 
order* have been issued for 
them to leave. 

There remains also the prob- 
lem of what political presence 
the PLO will leave behind to 
look after the interests of 
more than 400.000 Palestinian 
civilians in Lebanon. These 
problems require time but can 
be solved, officials believe. 

Scene, Page 3 


Pressure grows for cuts in BR 


BY HAZEL DUFFY, TRANSPORT CORRESPONDENT 


BRITISH RAIL'S deteriorating 
iinanciai position as a result of 
the Aslef strike is expected to 
put increasing pressure on the 
Government to agree to a finan- 
cial reconstruction of BR. 

BR losses for the current year 
are set to exceed £200m, even 
on the basis of the length of 
the strike to date, after pajtnent 
of the Government grant. 

The loss for 1982 was forecast 
at about £150m following the 
Aslef two-day stoppages .earlier 
this year, and BR is losing about 
£Am in revenue for each day 
that the present dispute goes on. 

BE's balance sheet carries 
accumulated losses of £7S.3m 
from last year. 

The Government would not 
exnocl to agree to write off BR’s 
debts until after it had con- 
sidered the report of the inquiry' 
into BR by Sir David Serpell. a 
former Transport Department 
official and British Railways 
Board member. 

The inquiry was first 
requested by Sir Peter Parker, 
BR chairman, last summer when 
the longer-term consequences of 
the railways’ declining financial 
position were becoming 
apparent. 

Mr David Howell, Transport 
Secretary, agreed to the inquiry 
in May. and it is expected that 
ils findings will be sumitted to 
the Government by the end of 
the year. 

The finances of the railways 


pressure over the past couple 
of weeks and the longer-term 
outlook for BR is being shaped 
by the present labour disputes. 

It will shortly find itself faced 
with having to decide whether 
to borrow against its £150m 
temporary borrowing limit to 
pay wages to members of the 
National Union of Railwaymen 
and the Transport Salaried 
Staffs Association. 

The Government might agree 


to a capital reconstruction, 
similar to that it agreed for the 
British Steel Corporation last 
year, in time for a new incom- 
ing chairman of BR. 

Sir Peter is to leave In Sep- 
tember next year. This would 
enable Government to give the 
new chairman more precise 
instructions on running the rail- 
ways. in line with the new 
policy for incoming chairmen of 
nationalised industries. 


BR had capital reconstruc- 
tions in 1962. 196S and 1974. 
and hoped that the Government 
would re-shape ils balance sheet 
shortly. 

It is likely that any such 
agreement by the Government 
would involve substantial chan- 
ges in the size of BR. including 
cuts. in the network, further 
reductions in the workforce, 
and stringent conditions on 
investment. 


Train drivers Continued from Page 


have come under increasing vent them. 


ber for industrial relations, said 
yesterday : "We are open next 
week. But we must have a mas- 
sive return to work — other- 
wise we have to think about a 
different course of action." 

BR will decide, probably on 
Tuesday or Wednesday, what 
action to take in the light of 
its current losses during the 
strike of about £S.5m per day. 
There are two main options : 
• Shutting the entire network. 
BR would not pay any staff to 
reduce its costs. This would in- 
volve suspending the guaranteed 
working week for NUR mem- 
bers and the much more difficult 
task of suspending the guaran- 
teed work of the Trans- 
port Salaried Staffs’ Association 
members. Such actions would 
raise the possibility of legal 
injunctions by the unions to pre- 


• Dismissing all .Aslef members. 
A condition of their re-eraploy- 
ment would he the acceptance 
of the flexible rostering which 
is at the heart of the dispute. 
These two main options could 
be run concurrently if necessary. 

BR’s tough stance is 
emphasised in advertisements 
placed today in the national 
newspapers, which state bluntly 
that " the railways are in 
terrible danger." BR says : 
"Time is critical now — dav by 
day. Unless Aslef calls off its 
strike immediately or drivers 
return to work, there will be 
unavoidable and grave conse- 
quences for all who work on 
the railway." 

Aslef has decided to join the 
other two unions in referring its 
pay claim for this year ;o 
arbitration. BR has withdrawn 
its offer to all rail unions of 5 


per cent. Not only will it not 
necessarily meet a tribunal 
award if it is more than it can 
afford, but it will not even 
attend the hearing of the Rail- 
way Staffs National Tribunal if 
the current strike remains in 
force. 

The Prime Minister again 
encouraged and congratulated 
Aslef members who had defied 
the strike call. However, Mr 
Alan Sapper, TUG chairman, 
said at the miners’ conference 
that Mrs Thatcher was planning 
to emulate the action of Presi- 
dent Reagan during the U.S. 
air traffic controllers strike by 
sacking Aslef members and 
bankrupting the union. 

Mr Ray Bucklon. AsleFs 
general secretary, said that the 
vast majority of his members 
were continuing to show 
solidarity. 


Unions let 
GEC nearer 
to role in 
AEG rescue 


By Kevin Dene in Frankfurt 


Continued from Page 1 

Interest 


June 


below that level since 
1978. 

National Westminster Bank, 
which was the first to respond 
last month with a cut In its 
base rate, reacted cautiously 
yesterday. “There is clearly 
some movement in interest 
rates generally and w e are 
watching the markets very 
closely," it said. 

However. the markets 
appeared tn believe that a 
I- point cut in base rates 
would not be long delayed. 

Money market interest 
rates have heen falling all 
this week and yesterday the 
seven-day interbank rale was 
down another V-: point to 12; 
per cent. 

Although the three-month 
Eurodollar interest rate also 
eased by •;? point to 13; per 
cent, the pound lost 3 points 
on the day against the dollar 
in London. 

It closed above the psycho- 
logical threshold of S1.70 at 
S1.7080. Its Bank of England 
trade weighted index against 
a basket of currencies 
remained at 91.1, unchanged 
from Wednesday. 

The dollar was again 
strong, rising 30 points 
against the Deutsche Mark in 
London from Wednesday’s to 
close at DM 2.3163. It also 
gained further ground 
ngainst the French franc and 
the Swiss franc. 


6 Secrets’ for Falklands inquiry 


BY PETER RIDDELL, POLITICAL EDITOR 


THE OFFICL\L inquiry into 
the origins of the Falklands 
crisis will have access to 
secret Intelligence assessments 
and reports, as well as Cabinet 
and departmental records. 
Mrs Margaret Thatcher dis- 
closed yesterday. 

The Prime Minister won 
Parliamentary approval for 
j formation of the inquiry, to be 
conducted by privy counsellors 
I under the chairmanship of 
! Lord Franks, without a vote. 

: But this was only after 

, barbed comments from Opposi- 
J Mop leaders and from Mr 
1 Edward Heath about the extent 
I of the concessions, she made in 
| recent consultations. Mr Denis 
I Healey, the Labour deputy 
I leader, poinled to "substantial 
changes from her original 
intentions.” 

Mr James Callaghan and Mr 
Healey were highly critical of 
! Government handling of the dis- 
I pule before the Argentine 
I invasion. 

i Both said that the Prime j 
j Minister was directly respon- 1 
I siblo, and their attacks show 
j that Labour will take a very 
1 strong fine against Mrs Thatcher 
: personally if the report provides 
I critical ammunition. 

She was closely questioned on 
! the composition of the inquiry, 
i answering that it must consist 
J of privy councillors since other- 
j wise the committee could not 
; see all relevant information, in- 
: eluding Intelligence documents, 
i While the Government aim I 


was to present Parliament with 
the report in full, she said, it 
retained the right to delete be- 
fore publication any material 
disclosure of which would be 
prejudicial to national security 
or damaging io foreign rela- 
tions. 

The comm it lee will be asked 
to avoid including such inform- 
ation in lt» main report. Any 
such information would u e sub- 
mitted to the Government as l 
confidential annex. 

Mrs Thatcher, stressing t.ie 
safeguards on handling c: c 
merits of previous Go-tmm-tr.': 
to deal with susceptii.lli'ue-s c: 
former Prime P.Iir.isferi air-cut 
constitutional propriety, -md 
documents would ho available 
solely to member* of the inquiry 
as privy councillor:. 

Members and zdvi-er* o: 
earlier Govern me r.* 5 -revM see 
relevant papers op their gv.t. 
periods if Invited to ;.vr 
evidence. The.-ie would re: he 


LORD WEINSTOCK, chief 
executive of GEC, the British 
electrical group, is to meet 
representatives of the AEG- 
Telefunken workforce in Frank- 
furt this week amid signs that 
trade union resistance to the 
UK company’s participation in 
a rescue of the financially 
troubled West German elec- 
trical group, is beginning to 
ypflkcn ■ 

AEG is the 13th largest Indus- 
trial company in West Ger- 
many. with about 123,000 
workers and annual sales worth 
more than DM 15bn (£3.5bn). 

Herr Eugen Loderer, chair- 
man of IG Metall. the most 
powerful trade union in the 
country, admitted yesterday, 
after a meeting on Wednesday- 
night with the Economics and 
Finance Ministers that no 
alternative “ national solution ’* 
was available. 

“ There is still no alternative, 
by way of a German sharehold- 
ing, to keep the Englishman 
out.” he said in a radio inter- 
view. He was convinced, how- 
ever. that there would be 
sufficient interested bidders to 
buy the lucrative parts of AEG, 
if -it were to go into liquidation. 

Earlier this week, Dr Otmar 
Emniinger. former chairman of 
the Bundesbank, the West 
German central bank, presided 
over a meeting in Frankfurt of 
representatives of several large 
West German industrial cor- 
porations — -including Siemens, 
Bosch and Mannesmann — at 
which possible “national solu- 
tions " to AEG's plight were 
discussed, it is understood- 

The worry for companies 
such as Siemens and Bosch is 
that GEC. a potent competitor 
in international markets, could 
gain access to advanced AEG 
technology. particularly in 
areas such as telecommunica- 
tions, and weapons and defence 
systems. 

On Wednesday, however, Herr 
Manfred Lahnstein. the Finance 
Minister and Count Otto LamJbs- 
dorff. the Economics Minister, 
made clear to the union dele- 
gation that no national solution 
was in sight. 

Yesterday, Herr Loderer also 
made clear that the unions 
understood there was no possi 
bility that the West German 
Government would take a direct 
equity interest in AEG. 

Herr Helmut Schmidt, the 
West German Chancellor, said 
on Wednesday night that the 
state could not be turned into 
a “ holding company." He 
added, however, “the state is 
in a position to help with 
export order guarantees, if 
strategy to show that the com 
pany can pull through this diffi 
cult period were to be pre 
sented." 

AEG said yesterday that it 
assumed Bonn would decide 
i next week to grant loan guaran- 
tees to cover specific export 
orders worth up to DM600m in 
all. The guarantees would clear 
the way for banks to open new 
lines of credit to the beleaguered 
concern. 



UK TODAY 


cisciojed to members of the 
present Governraem. 

These assurance? appeared to I 
satisfy Mr Callaghan and Mr 
Heath. j 

The Government will suggest j 
to Lord Franks that before any 1 
committee criticism of an indi- 
vidual is put in the report it | 

.should be given 10 the person 1 
ccnremed. and opportunity for 1 S.E., NAV., N-E. England, 

re-- re sen tr.tion? given. ! Midlands, North Wales, E. 

Mr Mich sc I Foot, the Labour | Scotland 
_eacer. pledged Labour support I Sunny periods; thundery rain 
for ;he inquiry ;.ft.er the con- , „ later. Max. 22C. (72F.J. 
'.’if-tion* which had hfT nt’d** * ®-^A- England, S. Wales, 

Mr Callaghan, in a very Channe! Wands - ,s,e of 
e 'rccz speech, s.vd the funda- 
meg'a! question for the inquiry 


MAINLY dry but cooler. Some 
rain later. 


v.-ij -.vnetner a prudent Govern- 
:ncn: would have taken more 
positive and firm action earlier 
•o forestall the invasion. 
Australian initiative on 
carrier sales irks Nott Pace G: 
t alkland inquiry terms 
approved Page 30 


N. Ireland, S.W. Scotland 
Cloudy with rain; brighter 
iater. Max. 20C. (68F.). 

Rest or Scotland 
Cloudy with rain, becoming 
heavier. Max. 19C. (66F.). 

Outlook: Rain with sunny inter- 
vals. 


WORLDWIDE 


Wall St 


Continued from Page 1 

can strike our of the - lue : 
cause widespread damage. 


fir.ar.cia! 

-5e:-ted 


com mum tv 
l:quid::y 


in 


' Ai,l£S >0 

! 4 1510-3 

| Ai-:e.-.. 
[ A'J-cns 
IiaS 1 nj-rj.r. 
5:r:l-.a. 


Vdair I 

iri'dJdy ( 
: C 'F 


2S 


the 


, , Et-ru; 

Tne majnrry of mve-ro.-a j-.sd .T.2r.-:eu and seamed banking , 
never heard of e::h?r D.-y.-ri> re'.gti'.m.-h!pi. The one bens- | f^?’ 
Government Sccur:'i*_= fieri ry o: :hu anxiety is the I 

Square Bagk yet t.ee ‘.'■■■o U.S. Treasury, Demand fur 
managed to land :''i2 '-.ar.I'* v. ' !\ Treasury securities, particu- 
losses amounting ;-:v=rg; ::rlv ^iiori-tenii bill's, h**: 
hundred million dollar.-. as investor, "look for 

The mounting unsa,? in tine safe ha'.en« for their monev. 


s 23 


in- ; : 


Bt> 7. r-l. 
Ellul d'! 

301-J, 

EnJan. 


David Sainsbury aids business school 


B.-jjsc's 
' C -TO 

C iM ff 


18 

21 

23 


19 


21 


S 22 


■‘Dfl T 


BY CHRISTOPHER LORENZ 


MR DAVID SAINSBURY. 
finance director and largest 
?«nqle shareholder in the .1. 
Sainsbury supermarket chain, 
is 10 put up £1.25ni for the 
London Business School to 
establish a research centre for 
busines? strategy. 

The funds will he provided 
in annual instalment over ihe 
nest five year by a trust set up 
by Sainsbury which already 
finances academic research. 

As a result the school can 
establish what it hopes will 
become the second largest 
academic unit in the Wert 
specialising in business policy 


and corporate stratesv after Lhe 
Harvard Business School. 

The prime aim of the centre 
is to become not only an 
academic one. but also a source 
of practical influence, particu- 
larly on decision-making at 
hoard level. This sets it apart 
from some or the more purely 
academic activities of busine.-i; 
schools both in Europe and the 
U.S. 

The Sainsbury endowment, an 
inflation-proofed £250,000 a 
year, will he followed by 
at tempts l n raise an annual 
£130.000 from other savers lo 
enable the centre Lo conduct 


j CVC 3 .t 

j Con.iijr 
! CC'J 

! ZwivC’i 

Cuti.T 


23 

23 


20 

20 


wider activities. 

Mr Sainsbury say; -g.'-r ,- - f 
his reasons fer ’tjndir.r 
centre is that ho share* a’ w. 
spread feeling - that titers 2 
considerable "need ‘for be-er 
straiepw thinking :r. Sr.tis.-. 
industry.*’ 

Prof Jame.- B’!i. r-rmcioe! -.f 
the school, says trig icn::e 
"'.vill put us in ’he forefront «.:* 
strategic thicking.” 

Though r.ne of tiio centre’s 
main area-, of stud:. - will be ti*e 
“ strategy " of service orrar.isg- 
tions. :t i> no: expect ed to 
devote disproportion its au.en- 


Somsbuiy’# 

reiatiing. 


own I 

j Fir- 

, rl;r»rc3 

•ne of : - s fir*: s-udies will be =■ 


::ai 


re ci u re and c^m- 


retitivc -n me world | £££ 

r^rocrapm-.s industry. Others j ci.,s ; « 
*'•“■• dcsl with siratc in the ; 

firr-g.-iv-l sort.™ and Various ; 

- ' f 1 - - - m 1 Ir'-sRr'i- 

in?.v. aTi.r ';ir role of ou;»:cie ! ir>rr>s». 
ciircctcrs. ' • o r/.:r 


Ar.jng Mr Sg injury’s out- : 


s 23 

S 23 
F 19 
$ 23 
C 17 

c 

S 25 

C T7 


v.-: >•- i,.i Democratic Party’s 
..rgr-iril advisory i-ummittee. 

Building morr muscle into 
cvrp.jratc strategy. Page lb’. 


.... - . S 

- ’; r -* -res.? :s Miainncc<:iip of [ jo'hun s 

L. Plr-13. s 
Liaten F 
Lce.imo S 
S 

C— Clc-jdv. 


M L. Arq f 
93 . Lu »mbg_ S 
75: Luxor S 
62 ; Madrid 
— 'Maiorca 
M Malaga 
— Main 
6 £ : Mchsir 
70 Malbne. 

73. M<. C.t 
97 .Mtemit 
77 ; Milan 
66 1 Monir'lt 
95 ; Moscow 
70 Munich 
77 ■ Nairobi 
77 'Naples 
72 1 Nassau 
— Nwcni. 

73 ;N Yori.t 
73 INicd 
73 ' ?! Tos.a 
TOOpono 
77 Oslo 
69 Par>a 
85 Penh 
59 P:nr,im 
W RvV ]vfc. 

73 Rhodes 
66 1 Rio J'cf 
73 ' Porno S 
9 : ' Saljb'rij s 
77 S cisrot C 
77 3 . M'rijz 

77|Snqaor. C 

W 'S'l‘0*!0t 

M : 5:sH:in. S 
77 Sira5b'g S 
63:5vdno/ P 
fU iTmp.or F 
77 :7r| Auitf S 
63 lT»nanfo S 
57 Tokyo 
— iTo-'ntOf 
79'Vuni* 
66 -.VtIaPc,a 
75 , Vwiqj 
7J 'Vienna 
82iV/ars-?w 

27 SI ' 2 un;h 
— c 9 ir r )— 


Y'day 

midday 

•C *F 


24 75 
40 1C* 
37 99 


66 


C 78 64 


■5 


19 

23 

23 


£5 


55 


35 7 ? 


r. 


23 


IHE LEX COLUMN 



the new 



three month' position finished 


After nearly a week of teasing, 
the Bank of E n gland at last T n L. fall -3 ft 'fa ^1 d at 153 per cent— and Federal 

gave an unequivocal market 1CU lu » <- w— .. 

signal by lowering its dealing 


rates on very short bills yester- 
day, and it is now more or 
less certain that clearing bank 
base rates are heading for 12 per 
cent. The gilt-edged market 
spent a comfortable, day, 
although some Jeremiahs were 
pointing out that 12 per cent 
marked the bottom of the last 
interest rate cycle. 


Imperial Group 

A year ago the stock market 
had more or less written off 
Imperial Group's dividend, and 
the shares could be picked up 
on a historic yield of nearly 20 
per cent. In the event the 
dividend was held, but the 
interim figures were abysmal 
and the chairman left in a 
thunderstorm; the subsequent 
months have resounded with 
the thud of axes felling dead 
■wood in the Imperial forest. It 
is an almost comical measure 
of the way the new manage- 
ment has changed ideas about 
Imps that yesterdav there was 
some sulking in the City at 
the absence of a dividend 
increase. 

Yet an increase on any 
significant scale would have 
been hugely inappropriate. Imps 
has been paying out far too 
much for far too l02g?, a and a 
maintained dividend this year 



smoothing payment* they would 
be well down. 

Tobacco has benefited from 
the absence of last year’s John 
Player King Size launch, and 
from more muted price-cutting 
activity. But discounting has 
continued on another front, 
increasingly 


Funds opened in New York 
around the 14 per cent level, 
with the Federal Reserve pro- 
viding comfort through another 
repurchase operation. 

Considering the underlying 
tightness in the money markets 
yesterday, this was not a bad 
performance. Payment was due 
on last week’s $4 bn tender of 
seven-year notes as well as on 
the SlO.Sbn of three and six- 
month bills sold earlier this 
week. . On top of that, the 
Treasury was seeking a further 
$6bn in one-year paper. 

But the more settled tone 
failed to unhinge the dollar, 
which remains at historically 
high levels against several con- 
tinental currencies. 

Sterling is still charting A 
fairly even course, despite the 
easing of domestic money rates. 
The trade-weighted index 
finished unchanged yesterday at 
91.1, helped perhaps by the 
strong capital position of the 
dealing banks at a time when 
some international banks are 
having to issue statements deny- 
ing that anything is wrong. 


since increasingly generous 

credit terms have been offered . , - „ . 

to the trade. This helps to ni“P“dity m the U.S. banking . 
explain why Imps’ net interest ®y s ^ em ^ driving up commercial 

paper rates, while concern 1 
about the solvency position of ' 
German banks is having an 
unsettling effect on the D-Mark, / 


charge is down by only £2. 8m, 
far less than a glance at last 
year’s balance sheet would lead 
one to expect 

maintained uivmeuu ,c« The brewing division remains _ 
will just about be covered by the mort rteiUent bnriness, and Quest Automation 
J its margins have held up well 


f ?l30n GMT UflioQMlurgs. 


S— Sunny 


current cost earnings. And that 
calculation takes no account of 
the £67 m of write-offs announced 
yesterday, most of it relating 
to the sale of the poultry 
businesses. 

For the six months to April 
Imps has reported pre-tax profits 
of £65. 8m, compared with 
£29.7m in 1980-81, but it should 
not be forgotten that £70m was 
a standard interim profit in pre- 
ceding years. Nor are the 1S81- 
82 figures exactly clean. They 
are flattered to the extent of 
£2.3m by changes in deprecia- 
tion policy, and reduced to the 
tune of £10m by the decision to 
transfer some first half tobacco 
profits, relating to the excep- 
tional level of trading before 
the Budget, into the second 
half. 

This unusual procedure has PniTOnriAC 
apparently at least half a. nod '-' ujreuura 
from the auditors, who are said 
to consider it fair although it is 
manifetly not true. Imps goes 
on to say that it expects second 
half profits will be similar to 
last year's — winch means that 
without the £10m n>U-yo ur-own 


on lower volume thanks to the 
rationalisation of production 
capacity. 

The amazing tuning about 
Impeial is thait it remains a 
yield stock even though the 
shares have doubled from last 
year's low point. A p/e ratio 
above 10 on a -full tax charge 
is distinctly high, given the mix 
of businesses, but the yield is 
still weH in double figures, 10.7 
per cent at lOOp. Some very 
necessary surgery has been 
carried out, but tint is perhaps 
the easy bit : — the problem now 
is to get some growth out of " 
the sound businesses that the 
group retains. And there is 
always the risk that Imps will 
splash out and make one of its 
awful acquisitions. 


The U.S. credit markets sug- 
gested yesterday that they still 
have the depth to absorb a 
drain on liquidity without rack- 


The Government is having to 
pay more than, lip-service in its 
support of the microchip revolu- 
tion. In July last year, the 
National Enterprise Board 
stumped up £2.9m equivalent to 
190p per ordinary share— for a 
stake in Quest Automation, a 
small computer company. Since 
then. Quest has reported a loss 
of £1.5m for the six months to 
August and the shares have 
tumbled -to a new low of 25ft 
falling by 56 per cent in .the 
last week. 

The NEB. now part of tire 
glamorous British. Technology 
Group, announced last week that 
it bad made a negative return 
on capital employed of 30 per 
cent in 1981. Ihe NEB can 
justifiably claim that its invest- 
ments are of a long-term nature 
bufc^ &s the Negretti Sc Zambra 
experience showed, the stock 
market sometimes takes a less 
far-sighted view. The best way 
out for Quest may be to seek 
help from an electricals group 


ing up money rates another. -With overlapping Interests and 
notch. Eurodollar rates closed the. necessary resources. Over to 
a shade easier in London — the you. Sir Ernest Harrison. 


] 

| • 
i • 


People come to Tokai 
because Tokai takes charge. 



The word is getting around tbatTbfcfiBahk Is the place to gofer expert fate naffawgi 
financial assistance. And ffe as much a matter of attitude as it is of knowhow. 

Total Is the 29th largest bank'in the world, so they” ne big enough to know what 
they’re talking abouL But they’re also smaD enou^i to talk strafcfaL Qmsequentivair kfryfe 
of people involved in international business are getting answers fromTokai — answers 
that make sound financial sense. 

The broad^ Totei netweak spans five continents Arid at offices around the worid^ lotei 
Is proring that they’re not only an informed and competent financial manaaeinmt 
service, but a concerned international huSness partner as wtiL 

Tokai Bank; Taking charge. • 


^TQKABAjNK 


/ 


Sirrjawxa; (Representative Offices) Toronto . Houston. Mexico aiv 
Jakarta, Seoul & Sydney; (Subsidiaries) Tokai Bank of CaffloiriaT 
Aisocates) London, Bangkok, Hoog Kong ^Sydney. ** 


Rspmducilon ef th» co manta of this m wpi p r in any manrar is . 

Rog.-aisred at tno Pas: ORin. • Prtnud by Prftas 'effiie. DuMWier/’ 

Brjckon House. Cannon Some London EGM!'4hJV' * *' ® M i Publrthod I -Fbuncia) Tima*. Ud.. 

11 . . O' Tlw Fmwcwl Timas EaL; t8s£ 


{ 





/